Vaughn Landscaping Inc. is preparing its budget for the first quarter of 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 of their fee in the month that service is performed, the month after, and the second month after receiving service.
Actual service revenue for and expected service revenues for are November $; December $; January $; February $; and March $
a
Prepare the following schedules for each month in the first quarter of and for the quarter in total:
Expected collections from clients.
Expected payments for landscaping supplies.
b
Determine the following balances at March :
Accounts receivable $
Accounts payable $
