Question
Oriole Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash
Oriole Landscaping Inc. is preparing its budget for the first quarter of 2022. 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 2021 and expected service revenues for 2022 are November 2021, $83,200; December 2021, $93,600; January 2022, $104,000; February 2022, $124,800; and March 2022, $145,600. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are December 2021, $14,560; January 2022, $12.480; February 2022, $15,600; and March 2022, $18,720. (a) Prepare the following schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients.
im not sure i understand the question can anyone help
(2) Expected payments for landscaping supplies. (b) Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable $ (2) Expected bavments for landscaning sunbliesStep by Step Solution
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