Accounting Excel - Create a 12-month cash flow budget in Excel

Accounting Excel

Required

a. Create a 12-month cash flow budget in Excel using the following assumptions:

§ Initial sales of $5 million, with forecasted monthly growth of 1%

§ 40% of each month’s sales for cash; 30% collected 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 forecasted monthly sales growth to range from 0.5% to 1.5% in increments of 0.1%.

c. Add a scroll bar to your spreadsheet that will let you modify the amount of initial sales to vary from $4 million to $6 million in increments of $100,000.

d. Design appropriate data entry and processing controls to ensure spreadsheet accuracy.