Schedule of Cash Payments for a Service Company

Oakwood Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:

March	$163,100
April	153,300
May	139,500

Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 63% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.

Oakwood Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31

	March	April	May
March expenses:
Paid in March	$fill in the blank 1
Paid in April		$fill in the blank 2
April expenses:
Paid in April		fill in the blank 3
Paid in May			$fill in the blank 4
May expenses:
Paid in May			fill in the blank 5
Total cash payments	$fill in the blank 6	$fill in the blank 7	$fill in the blank 8

Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

October	$106,000
November	133,000
December	194,000

The Accounts Receivable balance on September 30 was $71,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Office World Inc. Schedule of Collections from Sales For the Three Months Ending December 31

	October	November	December
Receipts from cash sales:
Cash sales	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
September sales on account:
Collected in October	fill in the blank 4
October sales on account:
Collected in October	fill in the blank 5
Collected in November		fill in the blank 6
November sales on account:
Collected in November		fill in the blank 7
Collected in December			fill in the blank 8
December sales on account:
Collected in December			fill in the blank 9
Total cash receipts	$fill in the blank 10	$fill in the blank 11	$fill in the blank 12