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1) Green Landscaping Inc. is preparing its budget for the first quarter of 2017. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2017 are November 2016, $93,280; December 2016, $84,030; January 2017, $102,060; February 2017, $123,830; March 2017, $132,290. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2016 and expected purchases for 2017 are December 2016, $16,950; January 2017, $17,820; February 2017, $17,750; March 2017, $19,030. (a) Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total: (1) Expected collections from clients.

(2) Expected payments for landscaping supplies.

(b) Determine the following balances at March 31, 2017:

(1)		Accounts receivable		$
(2)		Accounts payable		$

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3) North Company has completed all of its operating budgets. The sales budget for the year shows 50,900 units and total sales of $2,301,800. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,800. Interest is estimated to be $10,000. Income taxes are estimated to be $200,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

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3) For Gundy Company, units to be produced are 5,520 in quarter 1 and 6,500 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

GUNDY COMPANY Direct Labor Budget Quarter Six Months Units to be produced T 5,520 T 6,500 T Direct Labor Cost Per Hour 1.51 T 1.5 T Total Required Direct Labor Hours 8280 9750 Total Direct Labor Cost 124,200 124,200 146,250 7 146,250 270,450 270