Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 60
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 60 percent of their fees. The final 5 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, 85 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 month of June, July and August, which are Paul's busiest months: - June 1 cash balance, $14,600. - June 1 supplies on hand, $3,800. - June 1 accounts receivable, $8,000. - June 1 accounts payable, $3,700. - Estimated sales for June, July and August are $24,000,$36,000 and $38,000, respectively. - Sales during May were $22,000, and sales during April were $16,000. - Estimated purchases for June, July and August are $9,000,$17,000 and $12,000, respectively. - Purchases in May were $5,000. \begin{tabular}{|l|c|c|c|} \hline Budgeted cash payments & June & July & August \\ \hline & $ & $ & $ \\ \hline Purchases & & & \\ \hline Cash paid in month of purchase & & & \\ \hline Cashpaidinmonthfollowingpurchase & & & \\ \hline Total cash payments & & & \\ \hline \end{tabular} 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 60 percent of their fees. The final 5 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, 85 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 month of June, July and August, which are Paul's busiest months: - June 1 cash balance, $14,600. - June 1 supplies on hand, $3,800. - June 1 accounts receivable, $8,000. - June 1 accounts payable, $3,700. - Estimated sales for June, July and August are $24,000,$36,000 and $38,000, respectively. - Sales during May were $22,000, and sales during April were $16,000. - Estimated purchases for June, July and August are $9,000,$17,000 and $12,000, respectively. - Purchases in May were $5,000. \begin{tabular}{|l|c|c|c|} \hline Budgeted cash payments & June & July & August \\ \hline & $ & $ & $ \\ \hline Purchases & & & \\ \hline Cash paid in month of purchase & & & \\ \hline Cashpaidinmonthfollowingpurchase & & & \\ \hline Total cash payments & & & \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started