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Sunland Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare a cash
Sunland 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, $96,000; December 2021, $108,000: January 2022, $120,000; February 2022, $144,000; and March 2022, $168,000. 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, $16,800; January 2022. $14,400; February 2022, $18,000; and March 2022, $21,600. (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. November S December January February March Total collections $ January SUNLAND LANDSCAPING INC. Schedule of Expected Collections From Clients February S S March $ Sunland 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, $96,000; December 2021, $108,000; January 2022, $120,000: February 2022, $144,000; and March 2022, $168,000. 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, $16,800; January 2022, $14.400: February 2022. $18,000: and March 2022 $21.600. (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. SUNLAND LANDSCAPING INC. Schedule of Expected Collections From Clients January February S 15 $ S March Quarter
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