Swifty 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, $86,400; December 2021. $97,200; January 2022, $108,000; February 2022, $129,600; and March 2022, $151,200. 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, $15.120; January 2022. $12,960, February 2022, $16,200, and March 2022, $19,440. (a) Prepare the fallowing schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients.
Swifty 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, $86,400; December 2021. $97,200; January 2022, $108,000; February 2022, $129,600; and March 2022, $151,200. 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, $15.120; January 2022. $12,960, February 2022, $16,200, and March 2022, $19,440. (a) Prepare the fallowing schedules for each month in the first quarter of 2022 and for the quarter in total: (1) Expected collections from clients.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Swifty 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, $86,400: December 2021, $97,200;
January 2022, $108,000; February 2022, $129,600; and March 2022, $151,200.
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, $15,120; January 2022, $12,960: February 2022, $16.200;
and March 2022, $19,440.
(a)
Prepare the fallowing schedules for each month in the first quarter of 2022 and for the quarter in total:
(1) Expected collections from clients.
Transcribed Image Text:(1) Expected collections from clients.
November $
December
January
February
March
Total
collections
December
(1)
January
(2) Expected payments for landscaping supplies.
February
March
$
Total
payments
(2)
January
$
Schedule
January
$
SWIFTY LANDSCAPING INC.
f Expected Collections From Clients
February
SWIFTY LANDSCAPING INC.
Schedule of Expected Payments for Landscaping Supplies
February
Accounts payable
Accounts receivable $
$
Determine the following balances at March 31, 2022:
$
March.
$
March
$
Quarter
Quarter
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