Posted: July 14th, 2016

# Determine the amount of accounts receivable that Flory’s should report on the first quarter pro forma balance sheet?

The budget director of Soto’s Flower Shop has prepared the following sales budget. The company had
\$100,000 of accounts receivable at January 1. The company normally collects 100 percent of its accounts
receivable in the month following the sale.

Sales January February March
Cash sales \$30,000 \$66,000 \$72,000
Sales on account 90,000 120,000 140,000
Total budgeted sales \$120,000 \$186,000 \$212,000

Schedule of cash receipts
Current cash sales ? ? ?
Plus collection of accounts receivable ? ? ?
Total budgeted cash collections ? ? ?

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 Flory’s should report on the first quarter pro forma balance sheet.

Problem #6
Matching. Select the term from the list provided that best matches each of the following descriptions.

Description or Definition
A. Costs incurred on behalf of the whole company .
B. An offer from someone other than a regular customer buy goods or services at below normal selling prices.
C. The numbers in decision making that are subject to mathematical manipulation.
D. The attainment of control over the entire spectrum of business activity from production to sales.
E. Companies that provide buyers with preferred customer status in exchange for guaranteed purchase quantities and prompt payment schedules.

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