1. Explanation Cash receipts from customers: The amount that a company expects to collect from customers during the month, quarter, or year is known as cash receipts. These are considered to be the primary source of cash. Prepare schedule of cash receipts from customers for the first quarter of 2018. Schedule of Cash Receipts from Customers Particulars 1 st Quarter of 2018 Total sales $214,000 Particulars 1 st Quarter of 2018 Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 $23,200 1 st Quarter—Sales 139,100 Total cash receipts from customers $162,300 Table (1) Working note 1: Calculate the cash receipts to be collected in first quarter, 2018 . Cash receipts to be collected in first quarter } = Total sales × Percentage of sales =$214,000× 65 100 =$139,100 Working note 2: Calculate accounts receivable balance, first quarter, 2018 . Accounts receivable balance, first quarter, 2018 } = Total sales × Percentage of sales =$214,000× 35 100 =$74,900 Schedule of cash payments for purchases: This Schedule is prepared for the estimation of the cash payment for purchase for the period. This includes all probable cash payment. Prepare a schedule of cash payments for purchases for the first quarter of 2018 2. To determine Prepare a cash budget for H Company for the first quarterof 2018.

Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

6th Edition

ISBN: 9780134486857

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

See similar textbooks

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…

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…

Videos

Question

Chapter 22, Problem 48BP

To determine

Prepare schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018.

To determine

Prepare a cash budget for H Company for the first quarterof 2018.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 22, Problem 47BP

Chapter 22, Problem 49BP

Students have asked these similar questions

Compute revenue and variable expense for each show? General accounting

Net income was of solve this question general Accounting

The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used 32,500 Actual rate per hour $18.00 Standard rate per hour $16.50 Standard hours for units produced 32,000 How much is the direct labor efficiency variance?

Chapter 22 Solutions

Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

Ch. 22 - Managers are required to think about future...Ch. 22 - Prob. 2TI Ch. 22 - Managers use results to evaluate employees...Ch. 22 - Managers work with managers in other divisions.Ch. 22 - Prob. 5TI Ch. 22 - Match the budget types to the definitions.Ch. 22 - Prob. 7TI Ch. 22 - Prob. 8TI Ch. 22 - Prob. 9TI Ch. 22 - Prob. 10TI

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Prepare schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018.

Solution Summary: The author explains how to prepare a schedule of cash receipts from customers for the first quarter of 2018.

Concept explainers

Videos

Prepare schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018.

Prepare a cash budget for H Company for the first quarterof 2018.

Want to see the full answer?

Chapter 22 Solutions