The budget director of Heather's Florist has prepared the following sales budget. The company had $360,000 in accounts receivable on July 1. Heather'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 filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. July August September Sales Budget Cash sales $ 78,000 $ 68,000 $ 81,000 Sales on account 80,000 106,000 123,600 Total budgeted sales $ 158,000 $ 174,000 $ 204,600 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $ 438,000 $ 148,000 $ 187,000

The budget director of Heather's Florist has prepared the following sales budget. The company had $360,000 in accounts receivable on July 1. Heather'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 filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. July August September Sales Budget Cash sales $ 78,000 $ 68,000 $ 81,000 Sales on account 80,000 106,000 123,600 Total budgeted sales $ 158,000 $ 174,000 $ 204,600 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $ 438,000 $ 148,000 $ 187,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Messers Company is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash disbursements during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. MESSERS COMPANY Cash Budget For Month Ended February 28 Beginning cash balance Total cash available Preliminary cash balance Ending cash balance
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