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    anjols3's Avatar
    anjols3 Posts: 3, Reputation: 1
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    #1

    Jul 18, 2013, 07:33 PM
    Schedule of cash receipts and accounts receivable(EX gst)
    Hours booked to clients in the year ending June 2002 were 30,000 hours. Christian calculated that the firm had a 10% market share last year, and is budgeting to increase market share to 15%. Average charge rate was 80 per hour. Average charge rate budgeted or next year should reflect indexed cost of living increase of 5%.

    50%of fees were for cash, % were charged to credit and paid in the first month of billing, and 25% was charged to credit and paid in the second month of billing.

    Analysis of accounts rec'ble at 30 June 2002 showed:
    - $180000 was owed.
    - $60 was due in each of the 3 months July, August and Sept.

    I need to prepare a schedule of cash receipts from fees an accounts receivable for each of the 3 months July, August and September 2002.

    I am getting confused! Any help would be greatly appreciated.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jul 20, 2013, 01:43 AM
    What exactly are you confused about?
    anjols3's Avatar
    anjols3 Posts: 3, Reputation: 1
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    #3

    Jul 20, 2013, 03:08 AM
    Quote Originally Posted by paraclete View Post
    what exactly are you confused about?
    Zz
    anjols3's Avatar
    anjols3 Posts: 3, Reputation: 1
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    #4

    Jul 20, 2013, 03:42 AM
    [QUOTE=anjols3;3510952]

    I have worked out the new budgeted fees:
    Annual hours year ended 30/6/02 30000
    Total market year ended 30/6/02 300000hrs
    New market share 15% of total 45000hrs
    New hourly rate $80 + 5% = $84 /hr
    Budgeted fees receivable 3750hrs x $84 = $315000per mnth

    Cash is 50% = $152500
    Now I am not sure how to continue from here to prepare the schedule of cash receipts and a/c receivable. I am confused with how to calculate which collections from credit are for which month
    Can you help?]
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