A. Create a 12 month cash budget in Excel using the following assumptions:
• Initial sales of $5,000,000 with forecasted monthly growth of 1%.
• 40% of each months sales for cash; 30% for the following month ; 20% collected 2 months later; 8% collected 3 months later, and 2% never collected.
• Initial cash balance of 350,000.
B. Add a spinner to your spreadsheet that will enable you to easily change the forecasted monthly sales growth to range from .5% to 1.5% in increments of .1%.
C. Add a scroll bar to your spreadsheet that will let you modify the amount of the initial sales to vary from $4,000,000 to $6,000,000 in increments of $100,000.
D. Design appropriate data entry and processing controls to ensure the spreadsheet accuracy.
13.6 (12.4 expansion)
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.
This question was asked on Dec 01, 2011 and answered on Dec 03, 2011.
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