Current Attempt in Progress

Green Landscaping Inc. is preparing its budget for the first quarter of $2027.$ 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 $2026$ and expected service revenues for $2027$ are November $2026,$ $$80,000$; December $2026,$ $$90,000$;

January $2027,$$$100,000$; February $2027,$ $$120,000$; and March $2027,$ $$140,000.$

Purchases of landscaping supplies $($direct materials$)$ are paid $60\%$ in the month of purchase and $40\%$ the following month. Actual

purchases for $2026$ and expected purchases for $2027$ are December $2026,$ $$14,000$; January $2027,$ $$12,000$; February $2027,$ $$15,000$;

and March $2027,$$$18,000.$

$($a$)$

Prepare the following schedules for each month in the first quarter of $2027$ and for the quarter in total:

$(1)$ Expected collections from clients.

$(2)$ Expected payments for landscaping supplies.

$($b$)$

Determine the following balances at March $31,2027$:

$(1)$ Accounts receivable

$(2)$ Accounts payable $q$

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