preparing a schedual of cash receipts: the budget director of Camila\'s Florist

Question

preparing a schedual of cash receipts:

the budget director of Camila's Florist has prepared the following sales budget. the company had 210,000 $ in accounts receivable on July 1. Camila's Florist normally collects 100 percent of accounts recivable in the month following the monthof sale.

Required:

A) complete the schedual of each 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.

July

August

September

July

August

September

Sales Budget


Cash sales $60,000 $72,000 $86,400 Sales on account $90,000 $108,000 $129,600 Total budgeted sales $150,000 $180,000 $216,000



Schedule of Cash Receipts


Current cash sales $Fill in the Blank 01 $Fill in the Blank 02 $Fill in the Blank 03 Plus: Collections from accounts receivable $Fill in the Blank 04 $Fill in the Blank 05 $Fill in the Blank 06 Total budgeted collections $270,000 $162,000 $194,400

Explanation / Answer

We just include current cash sales and by subtracting total budget from current sales we get collections from accounts receivables

July August September Sales Budget Cash sales $60,000 $72,000 $86,400 Sales on account $90,000 $108,000 $129,600 Total budgeted sales $150,000 $180,000 $216,000 Schedule of Cash Receipts Current cash sales $60,000 $72,000 $86,400 Plus: Collections from accounts receivable $210,000 $90,000 $108,000 Total budgeted collections $270,000 $162,000 $194,400

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