Heidi Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Jus
ID: 2801025 • Letter: H
Question
Heidi Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Justin Wood, the company's president, to prepare a memo detailing the company's ending cash balance for the next 3 months. Below, you will see the relevant estimates for this period. July August September Credit sales $1,275,800 $1,483,500 $1,096,300 Credit purchases 765,480 890,160 657,780 Cash disbursements Wages, taxes, and expenses 348,600 395,620 337,150 Interest 29,900 29,900 29,900 Equipment - 158,900 96,300 Credit sales collections: Collected in month of sale: 35% Collected month after sale: 60% Never collected: 5% June credit sales: $1,135,020 June credit purchases: $681,012 Beginning cash balance: $425,000 All credit purchases are paid in the month after the purchase. Complete the cash budget for Wood Products for the next three months. Heidi knows that the cash budget will become a standard report completed before each quarter. To help reduce the time preparing the report each quarter, she would like a memo with the appropriate information in Excel linked to the memo. Prepare a memo to Justin that will automatically update when the values are changed in Excel. Heidi Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Justin Wood, the company's president, to prepare a memo detailing the company's ending cash balance for the next 3 months. Below, you will see the relevant estimates for this period. July August September Credit sales $1,275,800 $1,483,500 $1,096,300 Credit purchases 765,480 890,160 657,780 Cash disbursements Wages, taxes, and expenses 348,600 395,620 337,150 Interest 29,900 29,900 29,900 Equipment - 158,900 96,300 Credit sales collections: Collected in month of sale: 35% Collected month after sale: 60% Never collected: 5% June credit sales: $1,135,020 June credit purchases: $681,012 Beginning cash balance: $425,000 All credit purchases are paid in the month after the purchase. Complete the cash budget for Wood Products for the next three months. Heidi knows that the cash budget will become a standard report completed before each quarter. To help reduce the time preparing the report each quarter, she would like a memo with the appropriate information in Excel linked to the memo. Prepare a memo to Justin that will automatically update when the values are changed in Excel.Explanation / Answer
Heidi Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Justin Wood, the company's president, to prepare a memo detailing the company's ending cash balance for the next 3 months. Below, you will see the relevant estimates for this period.
July August September
Credit sales 1,275,800 1,483,500 1,096,300
Credit purchases 765,480 890,160 657,780
Cash disbursements
Wages, taxes, and expenses 348,600 395,620 337,150
Interest 29,900 29,900 29,900
Equipment - 158,900 96,300
Credit sales collections:
Collected in month of sale: 35%
Collected month after sale: 60%
Never collected: 5%
June credit sales: 1,135,020
June credit purchases: 681,012
Beginning cash balance: 425,000
All credit purchases are paid in the month after the purchase.
Complete the cash budget for Wood Products for the next three months.
Heidi knows that the cash budget will become a standard report completed before each quarter. To help reduce the time preparing the report each quarter, she would like a memo with the appropriate information in Excel linked to the memo. Prepare a memo to Justin that will automatically update when the values are changed in Excel.
Cash Budget for the three months of Wood Products, Inc.
Particular July August September
Cash in flow
Collection of last month credit sales 681012 765480 890100
Collection of the month credit sales 446530 519225 383705
Total 1127542 1284705 1273805
Cash out Flow
payment to credit purchases 681,012 765,480 890,160
Wages, taxes, and expenses 348,600 395,620 337,150
Interest 29,900 29,900 29,900
Equipment 0 158,900 96,300
Total 1,059,512 1,349,900 1,353,510
Net Cash 68,030 -65,195 -79,705
Opening Balance 425,000 493,030 427,835
Closing Balance 493,030 427,835 348,130
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