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Capital expenditures include $37,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 75% of sales in the quarter of the sale and 25% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Total sales 215,000 Budgeted purchases of direct materials 40,900 Budgeted direct labor cost 37,300 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,119 Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Depreciation 1,400 Income tax expense for the first quarter is projected at $46,000 and is paid in e. the quarter incurred. Insurance and property taxes 6,833 Humble Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $35,000, in Accounts Receivable g. is $23,200, and in Accounts Payable is $12,800. Budgeted selling and administrative expenses: Salaries expense 10,000 Rent expense 1,800 Insurance expense 2,100 Depreciation expense 450 Print Done Supplies expense 2,150

Capital expenditures include $37,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 75% of sales in the quarter of the sale and 25% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Total sales 215,000 Budgeted purchases of direct materials 40,900 Budgeted direct labor cost 37,300 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,119 Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Depreciation 1,400 Income tax expense for the first quarter is projected at $46,000 and is paid in e. the quarter incurred. Insurance and property taxes 6,833 Humble Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $35,000, in Accounts Receivable g. is $23,200, and in Accounts Payable is $12,800. Budgeted selling and administrative expenses: Salaries expense 10,000 Rent expense 1,800 Insurance expense 2,100 Depreciation expense 450 Print Done Supplies expense 2,150

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Humble Company has provided the following budget information for the first quarter of 2018: Additional data related to the first quarter of 2018 for Humble Company Requirement 1. Prepare Humble Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018 Begin by preparing the schedule of cash receipts from customers for the first quarter of 2018 Requirement 2. Prepare Humble Company’s cash budget for the first quarter of 2018
More Info Data Table Capital expenditures include $37,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 75% of sales in the quarter of the sale and 25% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Income tax expense for the first quarter is projected at $46,000 and is paid in e. the quarter incurred. Humble Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $35,000, in ACcounts Receivable g. is $23,200, and in Accounts Payable is $12,800. Total sales $ 215,000 Budgeted purchases of direct materials 40,900 Budgeted direct labor cost 37,300 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,119 Depreciation 1,400 Insurance and property taxes 6,833 Budgeted selling and administrative expenses: Salaries expense 10,000 Rent expense 1,800 Insurance expense 2,100 Depreciation expense 450 Print Done Supplies expense 2,150 Print Done
Transcribed Image Text:More Info Data Table Capital expenditures include $37,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 75% of sales in the quarter of the sale and 25% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Income tax expense for the first quarter is projected at $46,000 and is paid in e. the quarter incurred. Humble Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $35,000, in ACcounts Receivable g. is $23,200, and in Accounts Payable is $12,800. Total sales $ 215,000 Budgeted purchases of direct materials 40,900 Budgeted direct labor cost 37,300 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,119 Depreciation 1,400 Insurance and property taxes 6,833 Budgeted selling and administrative expenses: Salaries expense 10,000 Rent expense 1,800 Insurance expense 2,100 Depreciation expense 450 Print Done Supplies expense 2,150 Print Done
Begin by preparing the schedule of cash receipts from customers for the first quarter of 2018. Cash Receipts from Customers First Quarter 2018 Total sales Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 1st Qtr.-Sales Total cash receipts from customers Accounts Receivable balance, March 31, 2018: 1st Qtr.-Sales, collected in 2nd Qtr.
Transcribed Image Text:Begin by preparing the schedule of cash receipts from customers for the first quarter of 2018. Cash Receipts from Customers First Quarter 2018 Total sales Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 1st Qtr.-Sales Total cash receipts from customers Accounts Receivable balance, March 31, 2018: 1st Qtr.-Sales, collected in 2nd Qtr.
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