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Whispering Winds Landscaping Company is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare cash
Whispering Winds Landscaping Company is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare cash receipts and cash payments schedules. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is provided, 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, $130,000; December 2021, $100,000; January 2022, $144,000; February 2022, $161,000; March 2022, $170,000. Purchases of landscaping supplies are paid 30% in the month of purchase and 70% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $19,600; February 2022, $22,400; March 2022, $27,500. WHISPERING COMPANY WINDSLANDSCAPING Schedule of expected Collection from client January Avarten March February November December January February 13ooo 3oooo 86400 10000 43200 14 400 96600 483oo 1102ooo 13ooo 4oooo 144000 144900 1 02000 Manch Total collection 129400 149800 16 4700 443900 Prepare a schedules of expected payments for landscaping supplies for each month in the first quarter of 2022 and for the quarter in total. (Do not leave any answer field blank. Enter Ofor amounts.) WHISPERING WINDSLANDSCAPING COMPANY Schedule of Expected Payments for Landscaping Supplies January February March Qual December $ $ $ $ January February March Total payments $ $ $ $
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