Capital expenditures include $35,000 for new manufacturing equipment to be purchased and paid in the first quarterb. 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 incurredf. 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. Huber Company has provided the following budget information for the firstquarter 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 CustomersTotal salesCash Receipts from Customers:Accounts Receivable balance, December 31, 20231st Qtr.-SalesTotal cash receipts from customersAccounts 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 PaymentsTotal direct materials purchasesCash PaymentsDirect Materials:Accounts Payable balance, December 31, 20231st Qtr.-Direct material purchasesTotal payments for direct materialsDirect Labor:Total payments for direct laborManufacturing Overhead:Total payments for manufacturing overheadFirst Quarter2024Selling and Administrative Expenses:First Quarter2024Additional data related to the first quarter of 2024 for HuberCompany:i (Click the icon to view the data.)Read the requirements.218000 Total salesBudgeted purchases of direct materialsBudgeted direct labor costBudgeted manufacturing overhead costs:Variable manufacturing overheadDepreciationInsurance and property taxesBudgeted selling and administrative expenses:Salaries expenseRent expenseInsurance expenseDepreciation expenseSupplies expense$218,00040,90037,0001,1009006,8507,0004,5001,3004502,180

A cash budget is prepared with the help of a cash collection schedule, cash payments schedule,…

Answered: Total sales Budgeted purchases of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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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.

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

Total sales
Budgeted purchases of direct materials
Budgeted direct labor cost
Budgeted manufacturing overhead costs:
Variable manufacturing overhead
Depreciation
Insurance and property taxes
Budgeted selling and administrative expenses:
Salaries expense
Rent expense
Insurance expense
Depreciation expense
Supplies expense
$
218,000
40,900
37,000
1,100
900
6,850
7,000
4,500
1,300
450
2,180

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