Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

You must login to ask a question.

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Share & grow the world's knowledge!

We want to connect the people who have knowledge to the people who need it, to bring together people with different perspectives so they can understand each other better, and to empower everyone to share their knowledge.

Green Landscaping Inc.- Cash Receipt and Payment Budget

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. 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 2019 and expected service revenues for 2020 are November 2019, $92,440; December 2019, $83.270; January 2020, $103,690; February 2020, $121.440; and March 2020, $134,410,
Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019. $16.270: January 2020, $15.270: February 2020, $18,730; and March 2020, $21,600.
(a)
Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:

  1. Expected Collection from Clients
  2. Expected Payments for landscaping supplies

(b)
Determine the following balances at March 31, 2020:

Solution:

a)

1.Expected Collection from Clients.

GREEN LANDSAPING INC.
Schedule of Expected Collections From Clients
For the Quarter Ending March 31, 2020
JanuaryFebruaryMarchQuarter
November               9,244                 9,244
December             24,981                 8,327               33,308
January             62,214               31,107               10,369             103,690
February               72,864               36,432             109,296
March               80,646               80,646
Total Collections             96,439             112,298             127,447             336,184

2. Expected payments for landscaping supplies.

GREEN LANDSAPING INC.
Schedule of Expected Payments for Landscaping Supplies
For the Quarter Ending March 31, 2020
JanuaryFebruaryMarchQuarter
December               6,508                        –                   6,508
January               9,162                 6,108                        –                 15,270
February               11,238                 7,492               18,730
March               12,960               12,960
Total Collections             15,670               17,346               20,452               53,468

b.

(1) Accounts Receivable: $65,908

(2) Accounts Payable: $8,604

Calculations:

Receipts:

January = $92,440 x 10% + $83,270 x 30% + $103,690 x 60% = $96,439

February = $83,270 x 10% + $103,690 x 30% + $121,440 x 60% = $112,298

March = $103,690 x 10% + $121,440 x 30% + $134,410 x 60% = $127,447

Payments:

January = $16,270 x 40% + $15,270 x 60% = $15,670

February = $15,270 x 40% + $18,730 x 60% = $17,346

March = $18,730 x 40% + $21,600 x 60% = 12,960

b)

Accounts Receivables = $134,410 x 40% + 121,440 x 10% = $65,908

Accounts Payable = $21,600 x 40% = $8,640

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. 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.

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. 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.

Related Posts

Leave a comment

Latest News & Updates

QuizlyPro Latest Articles

McMann Solutions Inc. knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river

McMann Solutions, Inc., knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river. McMann Solutions is subject to a. neither a fine or imprisonment. b. fines but no criminal charges or imprisonment because a corporation cannot ...

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse. Farm and Ranch repackages the product, relabeling it as “Farmer’s Friend” and stating on the label and in advertisements that it ...

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis. On one occasion, Patrick fails to pay proper attention to his truck when he is unloading fuel into Tiger ...

Explore Our Blog