Refer to Problem P22- 47B. Additional data for Beta Batting Company:

a. Capital expenditures include $ 40,000 for new manufacturing equipment, to be purchased and paid in the first quarter.

b. Cash receipts are 75% of sales in the quarter of the sale and 25% in the quarter following the sale.

c. Direct materials purchases are paid 50% in the quarter purchased and 50% 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 $ 60,000 and is paid in the quarter incurred.

f. Beta expects to have adequate cash funds and does not anticipate borrowing in the first quarter.

P22- 47B

Requirements
1. Prepare Beta’s schedules for cash receipts from customers and cash payments for the first quarter of 2015.
2. Prepare Beta’s cash budget for the first quarter of2015.

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BETA BATTING COMPANY Balance Sheet December 31, 2014 Assets Current Assets: Cash Accounts Recevable Raw Materials Inwentory Finished Goods Inventory Total Current Assets 30,000 24,500 13,000 21,000 $ 88,500 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 125,000 (50,000) 75,000 163,500 Total Assets Liabilities Current Liabilities: Accounts Payable 14,000 Stockholders' Equity 100,000 49,500 Common Stock Retained Earnings Total Stockholders Equity Total Liabdities and Stodholders' Equity 149,500 S 163,500