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Coronado Landscaping Inc. is preparing its budget for the first quarter of 2022 . The next step in the budgeting process is to prepare a
Coronado 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, $73,600; December 2021, $82,800; January 2022, \$92,000; February 2022, $110,400; and March 2022, $128,800. 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, $12,880; January 2022, $11,040; February 2022, $13,800; and March 2022, $16,560 (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. (2) Expected payments for landscaping supplies. (b) Determine the following balances at March 31, 2022: (1) Expected collections from clients. (2) Expected payments for landscaping supplies. (b) Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable \$
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