The budget director of Heather's Florist has prepared the following sales budget. The company had $119,600 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. Sales Budget cash sales sales on account total budgeted sales Schedule of cash receipts current cash sales Plus: Collections from accounts receivable total Budgeted collections. July August September $73,000 $83,000 $83,000 94,000 102,000 119,600 167,000 185,000 202,600 $192,600 $177,000 $185,000
The budget director of Heather's Florist has prepared the following sales budget. The company had $119,600 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. Sales Budget cash sales sales on account total budgeted sales Schedule of cash receipts current cash sales Plus: Collections from accounts receivable total Budgeted collections. July August September $73,000 $83,000 $83,000 94,000 102,000 119,600 167,000 185,000 202,600 $192,600 $177,000 $185,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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:The budget director of Heather's Florist has prepared the following sales budget. The company had
$119,600 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.
Sales Budget
cash sales
sales on account
total budgeted sales
Schedule of cash receipts
current cash sales
Plus: Collections from accounts
receivable
total Budgeted collections
July
August
September
$73,000
$83,000
$83,000
94,000 102,000 119,600
167,000 185,000 202,600
$192,600 $177,000 $185,000
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