Question

The budget director of Heather’s Florist has prepared the following sales budget. The company had $290,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale.

Required

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	August	September
Sales Budget	$65,000	$76,000	$73,000
Cash Sales	92,000	102,000	138,600
Sales on Account	$157,000	$178,000	$211,600
Total Budgeted Sales
Schedule of Cash Receipts
Current Cash Sales
Plus: Collections from accounts receivable
Total budgeted collections

Answer 1