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Please show work if possible! Swifty Landscaping Inc. is preparing its budget for the first quarter of 2022 . The next step in the budgeting
Please show work if possible!
Swifty 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,$86,400; December 2021 , $97,200; January 2022, \$108,000; February 2022, \$129,600; and March 2022, \$151,200. 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,$15,120; January 2022,$12,960; February 2022, $16,200; and March 2022, \$19,440. (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. (2) Expected payments for landscaping supplies. (2) Expected payments for landscaping supplies. Determine the following balances at March 31, 2022: (1) Accounts receivable $ (2) Accounts payable $Step by Step Solution
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