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XYZ Company, Quarterly P&L Forecast Sales Sales Returns & Allowances Net Sales Cost of Sales Gross Profit Marketing &

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Excel Project
A. Expand the cash flow budget you created in Problem 12.4 to include a row for expected cash outflows equal to 77% of the current month's sales.
B. Also add a row to calculate the amount of cash that needs to be borrowed in order to maintain a minimum cash balance of $50,000 at the end of each month.
C. Add another row to show the cash inflow from borrowing.
D. Add another row to show the cumulative amount borrowed.
E. Add another row to show the amount of the loan that can be repaid, being sure to maintain a minimum ending balance of $50,000 each month.
F. Add appropriate data validation controls to ensure spreadsheet accuracy.
XYZ Company, Quarterly P&L Forecast Quarter 1 Forecast Quarter 2 Forecast Sales $100,000 $110,000 $121,000 Sales Returns & Allowances 2,000 2,200 2,420 Net Sales $98,000 $107,800 $118,580 Cost of Sales 70,000 77,000 84,700 Gross Profit $28,000 $30,800 $33,880 Marketing & Promotion 22,000 22,000 22,000 General & Administration 9,000 9,000 9,000 Operating Income Before Taxes $(3,000) $(200) $2,880 Provision for Income Taxes (1,020) (68) 979 Net Operating Income $(1,980) $(132) $1,901 Return on Sales -2.0% -0.1% 1.6% Assumptions Base Quarter Sales $100,000 Quarterly Sales Growth Rate 10.0% Sale Returns & Allowance Rate 2.0% Cost of Sales Rate 70.0% Marketing & Promotion $22,000 General & Administration $9,000 Base Quarter Actual
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XYZ Company, Quarterly P&L Forecast Quarter 1 Forecast Quarter 2 Forecast Sales $100,000 $110,000 $121,000 Sales Returns & Allowances 2,000 2,200 2,420 Net Sales $98,000 $107,800 $118,580 Cost of Sales 70,000 77,000 84,700 Gross Profit $28,000 $30,800 $33,880 Marketing & Promotion 22,000 22,000 22,000 General & Administration 9,000 9,000 9,000 Operating Income Before Taxes $(3,000) $(200) $2,880 Provision for Income Taxes (1,020) (68) 979 Net Operating Income $(1,980) $(132) $1,901 Return on Sales -2.0% -0.1% 1.6% Assumptions Base Quarter Sales $100,000 Quarterly Sales Growth Rate 10.0% 100 Sale Returns & Allowance Rate 2.0% Cost of Sales Rate 70.0% Marketing & Promotion $22,000 General & Administration $9,000 Base Quarter Actual
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This question was asked on Dec 01, 2011 and answered on Dec 01, 2011.

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