Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected:

1.

Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service.

2.

Actual service revenues for 2019 and expected service revenues for 2020 are as follows: November 2019, $89,000; December 2019, $71,000; January 2020, $112,000; February 2020, $122,000; and March 2020, $132,000.

3.

The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are: December 2019, $15,000; January 2020, $12,000; February 2020, $15,000; and March 2020, $20,000.

ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020
		January		February		March		Quarter
November		$		$		$		$
December
January
February
March
Total collections		$		$		$		$

(2) Schedule of expected payments for landscaping supplies. ENVIRONMENTAL LANDSCAPING INC. For the Quarter Ending March 31, 2020 February January March Quarter 6000 $ $ 0 $ 7200 4800 0 0 9000 6000 TIIT! 0 0 12000 13200 UA 13800 $ 18000 $ e Textbook and Media