The budget director of Natalia\'s Florist has prepared the following sales budge

Question

The budget director of Natalia's Florist has prepared the following sales budget. The company had $230,000 in accounts receivable on July 1. Natalia's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required: Complete the schedule of cash receipts by filling in the missing amounts. Sales Budget Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections 69,0001,00089,000 121,600 S 159.000 S 183,000 210.600 90,000 112.000 299,000$61000201,000 b. Determine the amount of accounts receivable the company ill report on its third quarter pro forma balance sheet.

Explanation / Answer

schedule of cash receipts:

b.accounts receivable = 121,600.

(sales on account of september will be reported as accounts receivable in third quarter proforma balance sheet.)

july august september current cash sales 69,000 71,000 89,000 collections from accounts receivable (previouse month sale on account) (june , july , august respectively ) 230,000 90,000 112,000 total budgeted collections 299,000 161,000 201,000

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