Prepare the schedule of cash receipts for October to December. (10 marks) The manager of Honey Bee Inn is preparing their budget for the upcoming fiscal quarter, commencing l October. The following information is available: The following balances are expected for the end of this month (30 September): cash $75,000; accounts receivable $200,000, accounts payable $70,000 and unpaid expenses $16,000. The manager expects 90% of the amount outstanding from customers at the end of this month to be collected in October and the remainder uncollectable. Projected balances for the next quarter are as follows: October November December Sales revenue 357,000 360,000 363,000 Purchases 127,000 128,000 129,000 Salaries 50,000 50,000 50,000 Depreciation Other expenses 15,000 32,000 15,000 15,000 33,000 34,000 30% of monthly sales are on credit. Receipts from credit customers are normally 60% in the month of sale, 35% in the month following the sale, and the remainder is considered uncollectable. 40% of goods purchased are paid for in the month of purchase and the remaining is paid in the following month. Salaries are paid before the end of each month. 50% of other monthly expenses are paid for in the month incurred and the remainder paid in the following month. Honey Bee Inn has placed an order for new furniture in November that will cost $40,000. The scheduled payment date is in January next year.
