Exercise 13-18

Cheyenne Landscaping Inc. is preparing its budget for the first quarter of 2017. 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 2016 and expected service revenues for 2017 are November 2016, $91,690; December 2016, $82,770; January 2017, $101,930; February 2017, $121,930; March 2017, $134,390. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2016 and expected purchases for 2017 are December 2016, $18,090; January 2017, $17,410; February 2017, $20,720; March 2017, $21,570.

Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total:

(2) Expected payments for landscaping supplies.

Determine the following balances at March 31, 2017:

January February March X December $ $ $ January February inggi idddd Odjad Ottoo March X Total payments $ LINK TO TEXT X Your answer is incorrect. Try again. Determine the following balances at March 31, 2017: x (1) Accounts receivable $ x (2) Accounts payable