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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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
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
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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