Complete the Budget in a Service Company (Cash Budget) assignment
You MUST use the template attached below.
DO NOT change the Excel template format, drop-down menus, or formulas that are already in the template.
Add a brief explanation of the budget just like what you should do if you were in a meeting with senior management and you were the accountant tasked with presenting the budget. Put that explanation on the “Remarks” section below the budget that you have prepared.
Hint: The budget should start with the January beginning balance and the February ending balance should also be the ending balance for the two months combined column.
Edge Soccer Programs
Cash Budget
For the Two Months Ended February 28
January
Beginning cash balance
Cash receipts from customers
Collection of note receivable
Cash available
Cash payments:
Equipment purchases
Selling and administrative expenses
Total cash payments
Ending cash balance before financing
Minimum cash balance desired
Projected cash excess (deficiency)
Financing:
Borrowing
Repayment of principal
Total effects of financing
Ending cash balance
Remarks:
0
$0
grams
et
ed February 28
February
Total (Jan 1-Feb 28)
0
$0
0
$0
Budget in Service Company (Cash Budget)
Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget
forecasts that collections from customers owed to the company will be $11,000 in January and
$15,200 in February. The soccer program is also supposed to receive $8,500 on a note
receivable from a soccer club that owes Edge for training players in January.
Edge plans to purchase soccer equipment in January and February with cash. The
budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Edge’s
operating costs is $2,900 per month.
Edge must maintain a minimum cash balance of $10,000 in their back account at all
times. If the amount in their bank account falls below $10,000, then the bank extends credit to
Edge immediately in multiples of $1,000. Edge pays back any amounts borrowed each quarter
in payments of $2,000 plus 4% interest. The first payment occurs three (3) months after the bank
has extended Edge the credit.
Requirement
Prepare a cash budget for January and February using the Excel template provided in the
assignment instructions.
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Formatting
Title Page
Citation
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