Parker's Landscaping has projected sales as follows:
September: $30,000
October: $50,000
November: $30,000
December: $20,000
Experience shows that 40% of Sales are for Cash with 60% of Sales on credit. 50% of current month credit sales are collected in the month following the sale and the balance(50% of the credit sale) is collected 2 months after the sale. Cash disbursements projected for November=$25,000 and $15,000 for December. The Cash balance at the beginning of November = $15,000 Prepare a Cash Budget for November and December. (Prepare a Cash Receipts Schedule first)
1. Prepare a Cash Receipts Schedule-Schedule the months of Sept, Oct, Nov and December
2. Prepare Cash Budget for November and December showing the ending Cash balance. Remember, Beginning Cash for Nov 1 is $15,000.