Solution-Prepare a schedules of expected collections from

Prepare a schedules of expected collections from clients

Assignment Help Managerial Accounting

Reference no: EM133078469

Question - Indigo Landscaping Company is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare cash receipts and cash payments schedules. To that end the following information has been collected.

Clients usually pay 60% of their fee in the month that service is provided, 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, $130,000; December 2021, $103,000; January 2022, $142,000; February 2022, $160,000; March 2022, $175,000.

Purchases of landscaping supplies are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,400; January 2022, $19,500; February 2022, $22,100; March 2022, $27,100.

Required - Prepare a schedules of expected collections from clients for each month in the first quarter of 2022 and for the quarter in total.

Reference no: EM133078469

Questions Cloud

Policy implications of the quantity theory of money : (a) Discuss the policy implications of the Quantity Theory of Money, the Liquidity Preference Theory and Friedman's Restatement of Quantity Theory of Money.

Compute the ending inventory and cost of goods sold : The inventory data for an item for November are: Compute the Ending inventory and Cost of Goods Sold using the Weighted-average cost method

Exogenous parameters and endogenous variables : What are the exogenous parameters and endogenous variables in the model?

What date is the cash discount valid until : The invoice amount is $35,000 less 25% and 10%, with terms 4/20, n/45. What date is the cash discount valid until

Prepare a schedules of expected collections from clients : Prepare a schedules of expected collections from clients for each month in the first quarter of 2022 and for the quarter in total

What is their textbook expense variance : The Santa Fe High School had an actual expense of $100,000 for textbooks for fall 2020. What is their textbook expense variance

Economic growth and structural transformation : Assess the strengths and weaknesses of the Lewis-Fei-Ranis model of economic growth and structural transformation. Think of ways to improve the model

What is the depletion expense in the third year : An Iron ore mine in Brazil cost $4M and contains an estimated amount of 1,600,000 tons of Iron ore. What is the depletion expense in the third year

What is your differential cost : Your rent is currently $900/month, your groceries amount to $200/month, and your other costs amount to $100/month. What is your differential cost

User Account

All Pages

Prepare a schedules of expected collections from clients

Reference no: EM133078469

Reference no: EM133078469

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT