Capital expenditures include $35,000 for new manufacturing equipment to be purchased and paid in the first quarter b. Cash receipts are 70% of sales in the quarter of the sale and 30% in the quarter following the sale. c. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter. d. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. e. Income tax expense for the first quarter is projected at $45,000 and is paid in the quarter incurred f. Huber Company expects to have adequate cash funds and does not anticipate borrowing in the first quarter. g. The December 31, 2023, balance in Cash is 528,000, in Accounts Receivable is $17,900, and in Accounts Payable is $17,300.
1. Prepare Huber Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2024. 2. Prepare Huber Company's cash budget for the first quarter of 2024.
Transcribed Image Text:Huber Company has provided the following budget information for the first
quarter of 2024:
(Click the icon to view the budget information.)
Requirement 1. Prepare Huber Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2024.
Begin by preparing the schedule of cash receipts from customers for the first quarter of 2024.
Cash Receipts from Customers
Total sales
Cash Receipts from Customers:
Accounts Receivable balance, December 31, 2023
1st Qtr.-Sales
Total cash receipts from customers
Accounts Receivable balance, March 31, 2024:
1st Qtr.-Sales, collected in 2nd Qtr.
Prepare the schedule of cash payments for the first quarter of 2024.
Cash Payments
Total direct materials purchases
Cash Payments
Direct Materials:
Accounts Payable balance, December 31, 2023
1st Qtr.-Direct material purchases
Total payments for direct materials
Direct Labor:
Total payments for direct labor
Manufacturing Overhead:
Total payments for manufacturing overhead
First Quarter
2024
Selling and Administrative Expenses:
First Quarter
2024
Additional data related to the first quarter of 2024 for Huber
Company:
i (Click the icon to view the data.)
Read the requirements.
218000
Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.
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