Love Thy Pet Inc.

,
Schedule for Expected Collections from customers
For the two months of January and February

Month of sales January February

November credit sales 250,000 (a) 50,000 (b) 0
December credit sales 300,000 (c) 90,000 (d) 60,000
January credit sales 350,000 (e) 175,000 (f) 105,000
February credit sales 400,000 (g) 0 (h) 200,000
Total 315,000 365,000

Where as collections are 50% in the month of sales, 30% in the first month following the
sales and 20% in the second month following the sales.

a. November for January = 250,000 X .20 = 50,000

b. November for February = 250,000 X 0% = 0

c. December for January = 300,000 X .30 = 90,000

d. December for February = 300,000 X .20 = 60,000

e. January for January = 350,000 X .50 = 175,000

f. January for February = 350,000 X .30 = 105,000

g. February for January = 400,000 X 0% = 0

h. February for February = 400,000 X .50 = 200,000
 Love Thy Pet Inc.,
Schedule for Expected Payment for Purchases of Materials
For the two months of January and February

Month of purchases January February

December credit purchases 200,000 (a) 120,000 (b) 0
January credit purchases 150,000 (c) 60,000 (d) 90,000
February credit purchases 90,000 (e) 0 (f) 36,000
Total 180,000 126,000

Where as purchases are paid 40% in the month of purchases. Therefore purchases will be
paid 60% in the month following the month of purchases.

a. December for January = 200,000 X .60 = 120,000

b. December for February = 200,000 X .0 = 0

c. January for January = 150,000 X .40 = 60,000

d. January for February = 150,000 X .60 = 90,000

e. February for January = 90,000 X .00 = 0

f. February for February = 90,000 X .40 = 36,000