3. need help explaining it

Requirements 1. Prepare Sosa Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2024. 2. Prepare Sosa Company's cash budget for the first quarter of 2024. Data table a. Capital expenditures include $45,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 80% of sales in the quarter of the sale and 20% 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 $42,000 and is paid in the quarter incurred. f. Sosa 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 $40,000, in Accounts Receivable is $18,500, and in Accounts Payable is $12,500. Begin by preparing the schedule of cash receipts from customers for the first quarter of 2024. Prepare the schedule of cash payments for the first quarter of 2024. Manufacturing Overhead: Total payments for manufacturing overhead Selling and Administrative Expenses: Total payments for Selling and Admin. expenses Income Taxes: Total payments for income taxes Capital Expenditures: Total payments for capital expenditures Total cash payments Accounts Payable balance, March 31, 2024 1st Qtr-Direct materials purchases, paid in 2nd Qtr. Cash Budget For the Quarter Ended March 31, 2024 Beginning cash balance Cash receipts Cash available Cash payments: Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Capital expenditures Total cash payments Ending cash balance