The budget director of Heather’s Florist has prepared the following sales budget

Question

The budget director of Heather’s Florist has prepared the following sales budget. The company had $260,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale.

1. Complete the schedule of cash receipts by filling in the missing amounts.

2. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.

July AugustSeptember 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 $ 77,000 $ 80,000$ 86,000 126,600 $ 161,000$ 188,000$ 212,600 84,000 108,000 $ 337,000$ 164,000 $ 194,000

Explanation / Answer

1. Complete the schedule of cash receipts by filling in the missing amounts.

2) Account receivale will report on its third quarter balance sheet is $126600

July August September Sales budget Cash sales 77000 80000 86000 Sales on account 84000 108000 126600 Total budgeted sales 161000 188000 212600 Schedule of cash receipts Current cash sales 77000 80000 86000 Plus: Collection from account receivable 260000 84000 108000 Total budgeted collection 337000 164000 194000

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