6 5 4 3 2 Now that My Assistant has completed its first full year of operations, W.T. is ready to budget for the upcoming year. He'd like to concentrate on the first quarter (July-September) before examining the entire year. W.T. has already completed projections for estimated jobs. My Assistant Services Revenue Projections July 1 September 30, Year 2 September August July Projected Jobs: PayPal On Account 88 84 80 56 52 48 4 Prepaid Total 4 4 132 148 140 He knows that one thing he'll need to do is complete a cash budget for the quarter. In order to complete the cash budget, he'll need to work with the schedules that follow. complete them. task is to our Service Revenue Budget. Based on the projects completed by W.T. (above). compute the amount of sales revenue My Assistant should cllect each month. Evaluate gross fees only (e.g. do nat deduct the PayPal fee at this point). Recall that different Customers receive different rates: those paying by PayPal and on account are charged $15 per job. The customer that pays in advance pays for three months' of service and is charged $14.50 per job. That customer last paid in June for service to be provided in June, July, and August (4 jobs completed per month). Also, recall that fees received through PayPal are received at job completion. Accounts Receivable are due the month following the month in which the service is provided. On June 30, the balance in Accounts Receivable was $600. My Assistant Services Revenue Budget July 1 September 30, Year 2 July August September Projected Service Revenue: I PayPal On Account Prepaid Total Budgeted Revenue Schedule of Cash Receipts: PayPal On Account Prepaid Total Budgeted Collections Supplies Purchases and Payments Budget. To ensure that he has an adequate amount of Supplies on hand, W.T. would like to maintain an ending supplies balance equal to 50% of the stimated supplies expense for the following month. October's budgeted supplies expense is $60. Recall that My Assistant had $30 of supplies on hand at June 30. Effective July 1, My Assistant's supplier now requires that 80% of purchases on account be paid in the month of purchase; the remaining 20% are paid in the month following the month of purchase. At June 30, My Assistant owed the supplier $25. My Assistant Supplies Purchases Budget July 1-September 30, Year 2 July August September Budgeted supplies expense $30 $40 $50 Plug: Desired ending supplies Supplies needed Less: Beginniog supplies Required purchoses (on account) My Assistant Schedule of Payments for Supplies July 1-September 30, Year 2 August July September Payment for current month purchases Payment for previous month purchases Total budgeted payments to suppler What is the amount of Accounts Payable My Assistant will report on its pro fomma balance sheet at the end of the first quarter (September 30) Selling and Administrative txpense Budget. In addition to the supplies expense estimated above, My Assistant will continue to have the following selling and administrative costs: PayPal fee Gas expense $0.75 per job Estimated at $2.50 per job that W.T. Completes. $100 per month $1 per PayPal job scheduled W.T. estimates that 10% of her scheduling fee will still be due at the end of each month. $12 per job, poid upon job completion. W.T estimates 30 jobs per month will be completed this way. $400 per month $100 per month, paid 6 months in advance. Balance in Prepaid Advertising was $300 at 6/30. The next payment is due October 1. Social Media Manager Contract worker payments for jobs W.T.'s salary Advertising W.T. also knows he'll need to account for the equipment of $500 he purchased in June. Since he'll be using the equipment to generate revenue, he krnows he needs to match its cost against the revenue that's generated. He's learned that the process of expensing Nong-term assets such as equipment is known as depreciation, but he's unsure how to record this. He has been told that the equipment should last five years and will be worthless at the end of that time period. W.T. expects to use the equipment equally in every month. Based on this, what would be a reasonable amount of Depreciation Expense each month? Roynd your computations to the nearest whole dollar. Based on the above, prepare an expense and payments budget for these items for July: Budgeted Expense Budgeted Payment Collection (PayPal) expenge Gas expense Scheduling expense-social media manager Delivery expense- contract workers (friends) W.T.'s salary Adverlising expense Depreciation expense Total What is the amount of fees payable that My Assistant will report on the July 31 pro forma balance sheet? What is the amount of Prepaid Advertising that My Assistant will report on the July 31 pro forma balance sheet? Based on your estimates above, what is the amount of Depreciation Expense that My Assistant will report for all of Year 23 $ $