e Landscaping Inc. is preparing its budget for the first quarter of 2017. The ne

Question

e Landscaping Inc. is preparing its budget for the first quarter of 2017. 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, an 10% the second month atter reeening sever Actual service revenue for 2016 and expected service revenues for 2017 are November 2016, $92,810i December 2016, se2610aanuary 2017. ,102240: february 2017, $121,770; March 2017, $134,990 Purchases of landscaping supplies direct materials are paid 60% in the month of purchase and 40% the following month. Actual Purchases for 2016 and expected purchases for 2017 are December 2016, $17,070; January 2017, $17,550; February 201, 19,240; March 2017, $23,770. Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total: (1) Expected collections from clients GREEN LANDSCAPING INC ule of Expected Collections From Clients For the Quarter Ending March 31, 2017 Janua February March anuary February March Total collections (2) Expected payments for landscaping supplies.

Explanation / Answer

a) Expected collections from clients :

January february March Quarter November 9281 9281 December 24783 8261 33044 January 61344 30672 10224 102240 February 73062 36531 109593 March 80994 80994 Total collection 95408 111995 127749 335152

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