A clothing boutique is opening for business in a new shopping center. The owner is preparing a sales budget for the next three months so that she can determine what purchases to make and anticipate whether there will be enough cash for other expenses. The owner estimates that clothing sales in the first month of business will be $

and accessory sales will be $

Sales are expected to increase by

each month after that.

The owner estimates that estimates that

of sales each month will be collected in cash, the rest of the sales on account is expected to be collected in the following month.

Required:

Using the format below, prepare a

month sales budget for the new boutique that distinguishes between cash sales and sales on account.

Using the format below, prepare a schedule of cash receipts for the first quarter.

What is the amount of Accounts Receivable at the end of the quarter?

Sales Budget Month #

Month #

Month #

Cash sales

Sales on account

Total budgeted revenues

Schedule of Cash Receipts Month #

Month #

Month #

Cash sales

Plus: Collections from accounts receivable

Total budgeted collectionsProblem

: Sales Budget and Cash Receipts Budget

A clothing boutique is opening for business in a new shopping center. The owner is preparing a

sales budget for the next three months so that she can determine what purchases to make and

anticipate whether there will be enough cash for other expenses. The owner estimates that

clothing sales in the first month of business will be $

and accessory sales will be $

Sales are expected to increase by

each month after that.

The owner estimates that estimates that

of sales each month will be collected in cash, the

rest of the sales on account is expected to be collected in the following month.

 

Required:

Using the format below, prepare a

month sales budget for the new

boutique that distinguishes between cash sales and sales on account.

Using the format below, prepare a schedule of cash receipts for the first

quarter.

What is the amount of Accounts Receivable at the end of the quarter?