Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director

Question

Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Natalia's Florist has prepared the following sales budget The company had $200 00 in accounts receivable on July 1 Natalia's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by illing in the missing amounts July August Soptember Sales Budget Cash sales Sales on account 71,000 80,000$ 89,000 86,000000 121,600 157,000 197,000 $210,600 Total budgeted sales Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections 271,000 $ 166,000 $206000 b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet

Explanation / Answer

a.  

b.

Accounts Receivable - 121,600 (September credit sales to be collected in October)

July August September Sales Budget Cash sales 71,000 80,000 89,000 Sales on account 86,000 117,000 121,600 Total budgeted sales 157,000 197,000 210,600 Schedule of Cash Receipts Current cash sales 71,000 80,000 89,000 Plus Collections from accounts receivables 200,000 86,000 117,000 Total budgeted collections 271,000 166,000 206,000

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