Question

Paul's Pool Service provides pool cleaning, chemical applicason, and pool repairs foe residential customers C service, Paul collects 15 percent of service fees. The final 5 percent is colected in the second month following purchase of the suppies Paul purchases, 70 percent used inthe mora, or purchase, and the remander ents are blled weekly for services peovided and usually pay 80 percent of their fees in the month the service is tollawring service. Paul purchases his supplies on credit and pays 50 pencest in the month of purchase and the remaining 50 pescent it the month used n the month lollowing purchase The folowing information is available for the months of June, Jdy, and August which are Paufs busiest months June 1 cash balance $16,900 June 1 supples on hand 54,700 June 1 accounts receivable $9,700 - Estimated sales for June, Juty, and August are 529,100, 543 700 and $46,900 respectvely Sales during May were $27,500, and sales during Aprt were $19,500 - Estmated purchases for June, July, and August are $10,600, 520 400, and $14,700, respectively Purchases in May were $5 800 Required: 1. Compute budgeted cash recepts and budgeted cash payments for each month Budgsted Cash Recepts Budgeted Cash Paymens

Answer 1

1.Budgeted Cash Receipt
	June	July	August
Sales	29,100	43,700	46900
Budgeted Cash Receipts
Receipt from customers billed in
April ( April sales * 5%) (19500*5%)	975.00
May ( June : 27500*15%), ( Jul: 27500*5%)	4,125.00	1,375.00
June ( in June : 80%, Jul: 15%, Aug : 5%)	23,280.00	4,365.00	1,455.00
July ( in July: 80%, Aug: 15%)		34,960.00	6,555.00
August ( in Aug: 80%)			37,520.00
Total Budgeted Cash Receipts for the month	28,380.00	40,700.00	45,530.00

2.Budgeted Cash Payment
	June	July	August
Purchase	10600	20400	14700
Payment made for purchases made in
May (5800*50%)	2,900.00
June ( in June , 10600*50%) ( in Jul, 10600*50%)	5,300.00	5,300.00
July ( in Jul:- 20400*50%), ( in Aug: 20400*50%)		10,200.00	10,200.00
August ( in Aug: 14700*50%)			7,350.00
Total Budgeted Cash Payments for the month	8,200.00	15,500.00	17,550.00

Balances for August 31 Budgeted Balance sheet
Particulars	$
Cash
June 1 Balance	16,900
Add:Total Cash Receipts	1,14,610
Less: Total Cash Payments	-41,250
August 31 Balance	90,260
Supplies Inventory
30% of August Purhase (14700*30%)	4,410
Accounts Recevable
20% of August Sales (46900*20%)	9,380
5% of July sales (43700*5%)	2,185
August 31 Balance	11,565
Accounts Payable
50% of August Purchases (14700*50%)	7,350