Lily 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, $67,200: December 2021, $75,600; January 2022, $84,000; February 2022, $100,800; and March 2022. $117,600. 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. $11,760; January 2022, $10,080; February 2022, $12,600 and March 2022, $15,120.

Lily 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, $67,200: December 2021, $75,600; January 2022, $84,000; February 2022, $100,800; and March 2022. $117,600. 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. $11,760; January 2022, $10,080; February 2022, $12,600 and March 2022, $15,120.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 3R: Review the completed master budget and answer the following questions: Is Ranger Industries...

See similar textbooks

Similar questions

Review the completed master budget and answer the following questions: Is Ranger Industries expecting to earn a profit during the next quarter? If so, how much? Does the company need to borrow cash during the quarter? Can it make any repayments? Explain. (Carefully review rows 74 through 80.)
Whispering Winds 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, $100,000; January 2022, $144,000; February 2022, $161,000; March 2022, $170,000.Purchases of landscaping supplies are paid 30% in the month of purchase and 70% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $19,600; February 2022, $22,400; March 2022, $27,500. Determine the account receivable balances at March 31, 2022.
Sunland Landscaping Inc. is preparing its budget for the first quarter of 2020. 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 2019 and expected service revenues for 2020 are November 2019, $93,620; December 2019, $83,630; January 2020, $102,120; February 2020, $123,950; and March 2020, $133,630.Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $16,410; January 2020, $13,540; February 2020, $18,970; and March 2020, $23,150.(a)Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:(1) Expected collections…
B. Mahmoud Repair Company is preparing its budget for the first quarter of 2021. 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 provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2021 are: November 2020, $120,000; December 2020, $110,000; January 2021, $140,000; February 2021, $160,000; March 2021, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2020 and expected purchases for 2021 are: December 2020, $21,000; January 2021, $20,000; February 2021, $22,000; March 2021, $27,000. Instructions (a) Prepare the following schedules for each month in the first quarter of 2021 and for the quarter in total: (1)…
Prepare schedules for cash receipts and cash payments, and determine the ending balances for the relevant balance sheet accounts. E10.30 (LO 4, 5) Service Environmental Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2021 and expected service revenues for 2022 are as follows: November 2021, $90,000; December 2021, $70,000; January 2022, $110,000; February 2022, $120,000; and March 2022, $130,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $14,000; January 2022, $13,000; February…
Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $60,000. The Company intends to keep its cash balance at the end of the period at $10,00O. Other operating expenses for this period are budgeted at $30,000, which includes $2,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the first half of 2022? O a. $20,000 O b. $12,000 Oc. None of the given answers O d. $10,000 O e. $22,000
Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $30,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $60,000. The Company intends to keep its cash balance at the end of the period at $10,000. Other operating expenses for this period are budgeted at $30,000, which includes $2,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the first half of 2022? O a. $22,000 O b. $20,000 O c. $10,000 d. None of the given answers O e. $12,000 NEXT PAGE P TOSHIBA
Major Landscaping Company is preparing its budget for the first quarter of 2017. 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 provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2017 are: November 2016, $120,000; December 2016, $110,000; January 2017, $140,000; February 2017, $160,000; March 2017, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2016 and expected purchases for 2017 are: December 2016, $21,000; January 2017, $20,000; February 2017, $22,000; March 2017, $27,000. Instructions Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total: Expected…
Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $60,000. The Company intends to keep its cash balance at the end of the period at $10,000. Other operating expenses for this period are budgeted at $30,000, which includes $2,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the first half of 2022? O a. $12,000 O b. $10,000 None of the given answers O d. $22,000 O e. $20,000
Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $50,000. The Company intends to keep its cash balance at the end of the period at $10,000. Other operating expenses for this period are budgeted at $30,000, which includes $4,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the first half of 2022? O a. $12,000 O b. None of the given answers O c. $22,000 O d. $20,000 O e. $10,000 NEXT PAGE US PAGE u.edu.om/mod/quiz/attempt.php?attempt=2029175&cmid%=9052598page%3=12#
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 112,500 Unit sales for December 2019 102,100 Expected unit sales for January 2020 113,000 Expected unit sales for February 2020 112,500 Expected unit sales for March 2020 116,000 Expected unit sales for April 2020 125,000 Expected unit sales for May 2020 137,500 Unit selling price $12 Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $183,780. Direct Materials Direct materials cost 75 cents…
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 112,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 114,000 Expected unit sales for March 2020 116,000 Expected unit sales for April 2020 126,000 Expected unit sales for May 2020 136,000 Unit selling price $12 Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $183,600.Direct MaterialsDirect materials cost 80 cents per pound. Two pounds of direct materials are…