+ Problem 5: Sales Budget and Cash Receipts Budget A clothing boutique is opening for business in a new shopping center. The owner is preparing a sales budget for the next three months so that she can determine what purchases to make and anticipate whether there will be enough cash for other expenses. The owner estimates that clothing sales in the first month of business will be $30,000 and accessory sales will be $15,000. Sales are expected to increase by 8% each month after that. The owner estimates that estimates that 20% of sales each month will be collected in cash, the rest of the sales on account is expected to be collected in the following month. Required: 1. Using the format below, prepare a 3-month sales budget for the new boutique that distinguishes between cash sales and sales on account. 2. Using the format below, prepare a schedule of cash receipts for the first quarter. 3. What is the amount of Accounts Receivable at the end of the quarter? Sales Budget Cash sales Month #1 Month #2 Fundamentals of Accounting Name Sales on account Total budgeted revenues Month #3 2 Schedule of Cash Receipts Month #1 Month #2 Month #3 Cash sales Plus: Collections from accounts receivable Total budgeted collections