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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. Clients usually pay 60% of their fee in the month that service is performed, 30% the month atter, and 10% the second month after receiving service. Actual service revenue for 2019 and expected service revenues for 2020 are November 2019,\$94,350; December 2019, 584,980 ; January 2020, \$103,740; February 2020, \$123,390; and March 2020,\$134,200. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $15,280, January 2020, \$15,900; February 2020, \$16,070; and March 2020,$20,860 (a) Prepare the following schedules for eachmonth in the first quarter of 2020 and for the quarter in total: (1) Expected collections from ellients (2) Expected payments for landscaping supplies. Determine the following balances at March 31, 2020 : (1) Accounts receivable (2) Accounts payable
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