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Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash
Green Landscaping Inc. is preparing its budget for the first quarter of 2020. 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.
reccipts schedule and a cashpaymen:s schadule. To that end the following informaticnhas begn collecsed. Clients usually pay 60% of iheir fee in the month that ser vice is psioned, 30\% the month after, and 10% the secand monthafter rec.9ivingsarvice. Actu3l senvicerevenue fer 2019 and expected servieerevenucs fer 2020 are November 2019,$93,200; December 2019, $94,640; January 2020,$104,02%; February 2020,$122,060; and March 2020,$132,570. Purchases of landscaping supplies (direct materials) arepaid 60% in the roon:h of purchase and 40% the following month. Actual and March 2020,$23,050 (a) Prepare the foll owing schedules for each month in :he first quarter of 2020 and for the qualter in tctal: (1) Expected collections frum dients. (2) Expected payments for landscaping supplies
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