Hello, how are you.
could you please help me to solve these excel exercises, they are so difficult for me, I don't know what formulas to use.
A standard auto loan. For each of the 48 monthly payments compute the items in the table: Beginning Balance, Payment,
Interest portion of the Payment, etc ... Use Excel's Payment function (PMT), and be careful about relative and absolute
cell references. The payment, of course, will be the same for all months.
A detail: interest rates are usually quoted on an annual basis. But here the payments are monthly. How will you account for
this when you reference the interest rate?
If you do this cleverly, you can specify the first two rows, then make one big copy for the other 46 rows.
Interest Rate 6%
Beginning Balance Payment Amount Interest Principal Reduction Ending Balance
Total Interest Total Principal
Prepare a Purchases Budget for Grunk that reflects a Cost of Merchandise Sold (Cost of Goods Sold, Cost of Sales)
of 60% and a required ending inventory of 65% of the next months sales.
Beginning inventory is $50,000.
Sales for January of next year are estimated to be $365,000
Prepare a Cash Receipts Budget for Grunk based on its historical cash collection patterns:
50% in the month of sale.
40% in the month following the sale.
10% two months following.
January collections will include $80,000 from the previous December and $20,000 from November.
February collections will include $20,000 from the previous December.
2 Months $20,000 20,000
Create a Cash Disbursements Budget for Grunk based on historical patterns:
40% of payments are made in the month of purchase.
60% of payments are made in the month following.
January payments are expected to include $60,000 from December purchasing activity.