Fill in the blanks in the excel. Cash budget-Basic Grenoble Enterprises had sale
ID: 2818874 • Letter: F
Question
Fill in the blanks in the excel.
Cash budget-Basic Grenoble Enterprises had sales of $50,300 in March and S60,200 in April. Forecast sales for May, June, and July are S70,500, $79,700, and $100,000 respectively. The firm has a cash balance of $4,600 on May 1 and wishes to maintain a minimum cash balance of $4600·Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 15% of sales for cash, 59% are collected in the next month, and the remaining 26% are collected in the second month following sale (2) The firm receives other income of S2,400 per month (3) The firm's actual or expected purchases, all made for cash, are $49,700, $69,900, and S79,700 for the months of May through July, respectively (4) Rent is $3,500 per month (5) Wages and salaries are 9% of the previous month's sales (6) Cash dividends of $3,300 will be paid in June (7) Payment of principal and interest of $4,100 is due in June (8) A cash purchase of equipment costing S6,500 is scheduled in July (9) Taxes of $5,600 are due in June Complete the first month of the cash budget for Grenoble Enterprises below: (Round to the nearest dollar. Please input all the values in the table before checking your answers.) March April S 50,300 S 60,200 S 70,500 May Sales Cash sales Lag 1 month Lag 2 months Other income 7,545 9,030 S10575 Total cash receiptsExplanation / Answer
Statement of Cash budget:
Particulars
March
April
May
June
July
Sales
50,300
60,200
70,500
79,700
1,00,000
Cash Sales @15%
10,575
11,955
15,000
Lag 1 Month @59%
35,518
41,595
47,023
Lag 2 Month @26%
13,078
15,652
18,330
Other Income
2,400
2,400
2,400
Total Cash Receipts (a)
61,571
71,602
82753
Disbursements:
Purchases
49,700
69,900
79,700
Rent
3,500
3,500
3,500
Wages and Sararies
5,418
6,345
7,173
Dividends
3,300
Principal and Interest
4,100
Equipment
6,500
Tax
5,600
Total Cash Disbursements (b)
58,618
92,745
96,873
Net Cash Flow (a-b)
2,953
-21,143
-14,120
Add Beginning Cash
4,600
4,600
4,600
Total Available Cash
7,553
-16,543
-9,520
Required Total Financing
-
21,143
14,120
Excess cash (invest in marketable security)
2,953
-
-
Ending Cash Balance
4,600
4,600
4,600
Particulars
March
April
May
June
July
Sales
50,300
60,200
70,500
79,700
1,00,000
Cash Sales @15%
10,575
11,955
15,000
Lag 1 Month @59%
35,518
41,595
47,023
Lag 2 Month @26%
13,078
15,652
18,330
Other Income
2,400
2,400
2,400
Total Cash Receipts (a)
61,571
71,602
82753
Disbursements:
Purchases
49,700
69,900
79,700
Rent
3,500
3,500
3,500
Wages and Sararies
5,418
6,345
7,173
Dividends
3,300
Principal and Interest
4,100
Equipment
6,500
Tax
5,600
Total Cash Disbursements (b)
58,618
92,745
96,873
Net Cash Flow (a-b)
2,953
-21,143
-14,120
Add Beginning Cash
4,600
4,600
4,600
Total Available Cash
7,553
-16,543
-9,520
Required Total Financing
-
21,143
14,120
Excess cash (invest in marketable security)
2,953
-
-
Ending Cash Balance
4,600
4,600
4,600
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