1. Improved Learning had prepared the following sales budget, schedule of budgeted cash receipts, and cash budget for 2019: (Click the icon to view the original budgets.) Suppose a change in the receipt of cash from sales on account is as follows: 3(Click the icon to view the revised receipt of cash information.) Read the requirements4. Improved Learning decided to revise its sales budget to show fourth quarter sales of 650 tablets due to the expectation of increased holiday sales. (Click the icon to view the revised sales budget.) Requirement 1. Revise the schedule of budgeted cash receipts to include the increase in fourth quarter sales and the change in the timing of customer receipts. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round your answers to the nearest dollar.) Schdule of Cash Receipts from Customers First Quarter Second Third Quarter Quarter Fourth Quarter Total Total sales First Quarter Second Quarter Third Quarter Fourth Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.-Cash sales 1st Qtr.-Credit sales collected in 1st qtr. 1st Qtr.-Credit sales collected in 2nd qtr. 1st Qtr.-Credit sales collected in 3rd qtr. 2nd Qtr.-Cash sales 2nd Qtr.-Credit sales collected in 2nd qtr. 2nd Qtr.-Credit sales collected in 3rd qtr. 2nd Qtr.-Credit sales collected in 4th qtr. 3rd Qtr.-Cash sales 3rd Qtr.-Credit sales collected in 3rd qtr. 3rd Qtr.-Credit sales collected in 4th qtr. 4th Qtr.-Cash sales 4th Qtr.-Credit sales collected in 4th qtr. Total cash receipts from customers Requirement 2. How will the changes in cash receipts affect the cash budget? Improved Learning will need to borrow (1) funds because of the (2) in cash receipts. This will result in (3) of interest expense and (4) in net income for the year. 1: Original Budgets Improved Learning Sales Budget For the Year Ended December 31, 2019 First Quarter Total Budgeted tablets to be sold Second Quarter 550 350 $ 550 $ 550 $ 302,500 $ 192,500 $ Third Quarter 1,600 550 $ 880,000 $ Sales price per unit Total sales 500 3,000 550 550 $ 275,000 $1,650,000 $ Schdule of Cash Receipts from Customers First Quarter Second Third Quarter Quarter Fourth Quarter Total Total sales $ 302,500 $ 192,500 $ 880,000 $275,000 $1,650,000 First Quarter Second Quarter Third Fourth Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.-Cash sales (20%) 1st Qtr.-Credit sales (80%), 40% collected in 1st qtr. 1st Qtr.-Credit sales (80%), 60% collected in 2nd qtr. $ 145,200 2nd Qtr.-Cash sales (20%) 38,500 2nd Qtr.-Credit sales (80%), 40% collected in 2nd qtr. 61,600 2nd Qtr.-Credit sales (80%), 60% collected in 3rd qtr. 92,400 3rd Qtr.-Cash sales (20%) 176,000 3rd Qtr.-Credit sales (80%), 40% collected in 3rd qtr. 281,600 3rd Qtr.-Credit sales (80%), 60% collected in 4th qtr. $ 422,400 4th Qtr.-Cash sales (20%) 55,000 88,000 4th Qtr.-Credit sales (80%), 40% collected in 4th qtr. Total cash receipts from customers $ 179,300 $ 245,300 $ 550,000 $565,400||$ 1,540,000 Accounts Receivable balance, December 31, 2019: 4th Qtr.-Credit sales (80%), 60% collected in 1st qtr of 2020 $ 132,000 $ 22,000 60,500 96,800 $ Fourth Quarter 2: Reference 3: More Info 4: Requirements 1. Revise the schedule of budgeted cash receipts to include the increase in fourth quarter sales and the change in the timing of customer receipts. How will the changes in cash receipts affect the cash budget? (1) less (2) decrease (3) a decrease (4) a decrease amore O increase O an increase an increase Beginning cash balance Cash receipts Cash available Cash payments: Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de ciency) Financing: Barrowing Principal repayments Total effects of financing Ending cash balance Budgeted tablets to be sold Sales price per unit Total sales Improved Learning Cash Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter First Quarter 38,000 $ 35,575 S 35.680 179,300 245,300 550,000 585,680 217.300 280,875 40,000 33.280 14,080 97,640 59,725 3,000 40,000 40.000 146,880 172,440 38,400 88,320 100.300 105.760 58,625 65,500 3,000 3,000 990 3,135 388,195 478,155 107,525 (35,000) (35,000) 72,525 247,725 (30,425) (107,320) (35,000) (65,425) (142,320) 66,000 143,000 66,000 143,000 (72,000) (72,000) 35.525 35,575 35,680 Improved Learning Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter 550 550 $ Quarter 350 550 302,500 $ 40% in the quarter of the sale 30% in quarter after the sale 29% two quarters after the sale 1% never collected 1,600 550 880,000 Fourth Quarter Fourth Quarter Total 35.525 $ 38,000 565,400 1,540,000 600.925 1,578,000 160,000 491,920 40,000 139.320 33,280 99,740 59,450 3.000 2,055 174,080 403,440 243,300 12,000 6,180 376,845 1,490,920 224,080 (35,000) 189.080 87,080 (35,000) 52,080 209,000 (209,000) (137,000) (137,000) 87,080 Total 3,150 650 550 $ 550 357,500 1,732,500