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Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50%
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50% of their fees and the month the service is provided. And the month following the service, Paul collects 40% of service fees. The final 10% is collected in the second month following service. Paul purchases his supplies on credit, and pays 50% in the month of purchase and the remaining 50% in the month following purchase.
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase The following information is available for the months of June, July, and August, which are Paul's busiest months . June 1 cash balance $14,500 . June 1 supplies on hand $3,900 . June 1 accounts receivable S8, 100 . June 1 accounts payable $3,800 . Estimated sales for June, July, and August are $24,300, $36,500, and 538.900 respectively . Sales during May were $22,700, and sales during April were $16,300 Estimated purchases for June, July, and August are 59,000 $17 200, and $12 300 respectively . Purchases in May were $5,000 Required 1. Compute budgeted cash receipts and budgeted cash payments for each month June July August Budgeted Cash Receipts f Budgeted Cash Payments
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