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both charts have a Quarter column , couldn't fit in the picture Crane Landscaping Inc. is preparing its budget for the first quarter of 2022.
both charts have a "Quarter" column , couldn't fit in the picture
Crane Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2022 are November 2021, $64.000; December 2021, $72,000; January 2022, $80,000; February 2022. $96,000; and March 2022 $112,000. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $11,200: January 2022. $9,600; February 2022. $12,000; and March 2022. $14.400. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. CRANE LANDSCAPING INC. Schedule of Expected Collections From Clients January February March November $ $ December January February March Total collections $ Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients. CRANE LANDSCAPING INC. Schedule of Expected Collections From Clients January February March Quart $ $ $ $ $ (2) Expected payments for landscaping supplies. CRANE LANDSCAPING INC. Schedule of Expected Payments for Landscaping Supplies January February March December $ January (2) Expected payments for landscaping supplies. CRANE LANDSCAPING INC. Schedule of Expected Payments for Landscaping Supplies January February March December $ $ $ January February March Total payments $ $ (b) Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable $ Step by Step Solution
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