The Budget Director of Mandy's Kitchen Shop Has Prepared the Following

question 59

Essay

The budget director of Mandy's Kitchen Shop has prepared the following sales budget.The company had $50,000 of accounts receivable at January 1.The company normally collects 100% of its accounts receivable in the month following the sale.
$\begin{array}{lrrrrr}\text { Sales } & \text { January } & \text { February } & \text { March }\\\text { Cash sales } & \$ 15,000 & \$ 33,000& \$ 36,000 \\\text { Sales on account } &\underline{ 45,000} &\underline{ 60,00 0}&\underline{ 70,000} \\\text { Total budgeted sales } & \$ 60,000 & \$ 93,000 & \$ 106,000\\\\\text { Schedule of cash receipts }\\\text { Current cash sales } & ? & ? & ? \\\text { Plus collection of accounts } & ? & ? & ? \\\text { receivable } & \underline{\quad?} & \underline{\quad?}&\underline{\quad?} \\\text { Total budgeted cash collections } & \underline{\quad?}& \underline{\quad?}&\underline{\quad?}\end{array}$
Required:
(a)Complete the schedule of cash receipts by filling in the missing amounts.What are the total budgeted cash receipts for the first quarter?
(b)Determine the amount of accounts receivable that Mandy's should report on the first quarter pro forma balance sheet.

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Definitions:

Bulge Sign

A clinical test for knee effusion involving the application of pressure on the knee to detect fluid movement, indicating the presence of excess fluid in the knee joint.

Suprapatellar Pouch

An extension of the knee joint's synovial membrane above the patella, involved in knee movement and fluid distribution.

Epicondyle

A projection on a bone above a condyle (a round prominence at the end of a bone), often serving as a site for ligament or tendon attachment.

Osteoporosis

A bone disease characterized by decreased bone mass and density, leading to an increased risk of fractures.