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Can someone help me please. Thanks in advance Minor Landscaping Company is preparing its budget for the first quarter of 2022 . The next step
Can someone help me please. Thanks in advance
Minor Landscaping Company 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 provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2021 and expected service revenues for 2013 are: November 2021 , $120,000; December 2021, \$110,000; January 2022, \$140,000; February 2022, \$160,000; March 2022, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2012 and expected purchases for 2022 are: December 2021, $21,000; January 2022, \$20,000; February 2022, $22,000; March 2022, $27,000. Required: (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. (6 Marks) (2) Expected payments for landscaping supplies. (6 Marks) (b) Determine the following balances at March 31,2022 : (1) Accounts receivable. (2 Marks) (2) Accounts payable. (2 Marks)Step by Step Solution
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