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The budget director of Heather's Florist has prepared the following sales budget. The company had $121,600 in accounts recer 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.

The budget director of Heather's Florist has prepared the following sales budget. The company had $121,600 in accounts recer 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.

FINANCIAL ACCOUNTING
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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**Heather's Florist Sales Budget and Cash Receipts Schedule** The budget director of Heather's Florist has prepared the following sales budget for the upcoming months. The company started with $121,600 in accounts receivable as of July 1. Heather's Florist typically 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 - **July:** - Cash Sales: $72,000 - Sales on Account: $96,000 - **Total Budgeted Sales:** $168,000 - **August:** - Cash Sales: $94,000 - Sales on Account: $101,000 - **Total Budgeted Sales:** $195,000 - **September:** - Cash Sales: $89,000 - Sales on Account: $121,600 - **Total Budgeted Sales:** $210,600 ### Schedule of Cash Receipts - **July:** - Current Cash Sales: $72,000 - Plus: Collections from Accounts Receivable: $121,600 - **Total Budgeted Collections:** $193,600 - **August:** - Current Cash Sales: $94,000 - Plus: Collections from Accounts Receivable: $96,000 - **Total Budgeted Collections:** $190,000 - **September:** - Current Cash Sales: $89,000 - Plus: Collections from Accounts Receivable: $101,000 - **Total Budgeted Collections:** $190,000 This budget and schedule help monitor the cash flow and predict future financial health by organizing sales expectations and cash receipts accordingly.
Transcribed Image Text:**Heather's Florist Sales Budget and Cash Receipts Schedule** The budget director of Heather's Florist has prepared the following sales budget for the upcoming months. The company started with $121,600 in accounts receivable as of July 1. Heather's Florist typically 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 - **July:** - Cash Sales: $72,000 - Sales on Account: $96,000 - **Total Budgeted Sales:** $168,000 - **August:** - Cash Sales: $94,000 - Sales on Account: $101,000 - **Total Budgeted Sales:** $195,000 - **September:** - Cash Sales: $89,000 - Sales on Account: $121,600 - **Total Budgeted Sales:** $210,600 ### Schedule of Cash Receipts - **July:** - Current Cash Sales: $72,000 - Plus: Collections from Accounts Receivable: $121,600 - **Total Budgeted Collections:** $193,600 - **August:** - Current Cash Sales: $94,000 - Plus: Collections from Accounts Receivable: $96,000 - **Total Budgeted Collections:** $190,000 - **September:** - Current Cash Sales: $89,000 - Plus: Collections from Accounts Receivable: $101,000 - **Total Budgeted Collections:** $190,000 This budget and schedule help monitor the cash flow and predict future financial health by organizing sales expectations and cash receipts accordingly.
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