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The following information is available for the months of June, July, and Augswes Paul purchases 85 percent is used in the month of purchase, and the remainder is used in the month following purchase Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit and pay 50 percent in the month of June 1 cash balance $14,600 June 1 supplies on hand $3,800 June 1 accounts receivable $8,000 June 1 accounts payable $3,700. Estimated sales for June July, and August are $24.000, $36,000 and $38,000, respectively. Sales during May were 522,000, and sales during Apell were 516,000 Estimated purchases for June July, and August are $9,000, $17,000, and $12000, respectively Purchases in May were $5,000 Required 1. Compute budgeted cash receipts and budgeted cash payments for each month June 22 900$ S Budgeted Cars Recepts Budgeted Cash Payments July August 31,1005 36 600 13 000 $ 14,500 $ 7,000 $ 2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: Balances for August 31 Budgeted Balance Sheet Cash June 1 Balance S 14 000 Add Total Cash Receipts 90,600 Less Total Cash Payments (34 500) August 31 Balance $ 70,700 Payments 2. Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts: Answer is complete but not entirely correct. Balances for August 31 Budgeted Balance Sheet Cash IS 14,600 90,600 (34,500) 70,700 $ $ June 1 Balance Add: Total Cash Receipts Less: Total Cash Payments August 31 Balance Supplies Inventory 15% of August Purchases Accounts Receivable 40% of August Sales 5% of July Sales Balance at August 31 Accounts Payable 50% of August Purchases 1,800 IS 14,400 1,900 16,300 $ 6,000

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