Question

S&p enterprises has provided data from the first three months of the year. the controller has asked you to prepare the cash budget and the related schedules for expected cash collections and payments to suppliers. use the information included in the excel simulation and the excel functions described below to complete the task

Answer 1

Answer:

$34,600

Explanation:

Month : January ; February ; March

Cash Sales : 1600 ; 3750 ; 5100

Sales on Account : 25,000 ; 30,000 ; 40,000

Total Sales : 26,600 ; 33,750 ; 45,100

Account Receivable collections are:

Month of Sale : 15%

Month Following Sale : 60%

Second Month Following Sale : 22%

Uncollectables : 3%

Cash Collections:

January $5,500

February $18,000

March $6,000

Total Cash Collections March is $34,600