Applied Learning had prepared the following sales budget, schedule of budgeted cash receipts, and cash budget for 2019 EEB (Click the icon to view the original budgets.) Suppose a change in the receipt of cash from sales on account is as follows: (Click the icon to view the revised receipt of cash information.) Applied Learning decided to revise its sales budget to show fourth quarter sales of 850 tablets due to the expectation of increased holiday sales Read the requirements (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 a box is not used in the table, leave the box empty; do not enter a zero. Round your answers to the nearest dollar.) Schdule of Cash Receipts from Customers First Second Third Fourth Quarter QuarterQuarter Quarter Total Total sales First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 st Qtr.-Cash sales 1st Qtr.-Credit sales collected in 1st qtr Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.-Cash sales st 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 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? Applied Learning will need to borrowunds because of the expense and in cash receipts. This will result in V of interest | in net income for the year. iOriginal Budgets Applied Learning Sales Budget For the Year Ended December 31, 2019 Second Quarter First Third Fourth Quarter Quarter Quarter Total 350 800 $ 900 600 3,150 800 Budgeted tablets to be sold Sales price per unit Total sales 1,300 800 $ 800 $ 800 $ $720,000 $ 280,000$1,040,000$ 480,000$ 2,520,000 Schdule of Cash Receipts from Customers First Second Third Fourth uarter QuarterQ QuarterQuarter Total Total sales $ 720,000$ 280,000 $ 1,040,000$ 480,000$ 2,520,000 Third uarter Quarter Quarter First Second Fourth QuarterQu Total Cash Receipts from Customers: Original Budgets Total sales $720,000$ 280,000 1,040,000 $ 480,000$ 2,520,000 First Secong Third Fourth QuarterQuarterQuar rter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31,2018 $ 15,000 1st Qtr.-Cash sales (30%) 1st Qtr.-Credit sales (70%), 60% collected in 1st qtr. 302,400 1st Qtr.-Credit sales (70%), 40% collected in 2nd 216,000 tr $ 201,600 2nd Qtr.-Cash sales (30%) 2nd Qtr-Credit sales (70%), 60% collected in 2nd qtr 2nd Qtr.-Credit sales (70%), 40% collected in 3rd 84,000 117,600 tr 3rd Qtr.-Cash sales (30%) 3rd Qtr.-Credit sales (70%), 60% collected in 3rd $ 78,400 312,000 436,800 3rd Qtr.-Credit sales (70%), 40% collected in 4th tr $ 291,200 Print Done Original Budgets qtr 4th Qtr.-Cash sales (30%) 4th Qtr.-Credit sales (70%), 60% collected in 4th qtr Total cash receipts from customers $ 291,200 144,000 201,600 $ 533,400 $ 403,200 $ 827,200$ 636,800 $ 2,400,600 Accounts Receivable balance, December 31, 2019: 4th Qtr.-Credit sales (70%), 40% collected in 1st qtr of 2020 $ 134,400 Applied Learning Cash Budget For the Year Ended December 31, 2019 Third Quarter $43,000$ 40,600 $ 40,350 $ 40,165$43,000 First Second Fourth Quarter Quarter Quarter Total Beginning cash balance 533,400 403,200 827,200 636,8001 2,400,600 Cash receipts Original Budgets Quarter Quarter Quarter Quarter Total Beginning cash balance Cash receipts Cash available Cash payments $43,000 $ 40,600$ 40,350$ 40,165$43,000 636,8002,400,600 676,965 2,443,600 533,400 403,200 827,200 576,400 443,800 867,550 Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense 45,000 176,700 97,200 133,200 55,800 3,500 1,050 512,450 (29,400)(68,650) 45,000 244,000 208,800 151,800 78,600 3,500 2,685 734,385 133,165 (40,000)(40,000)(40,000) 93.165 45,000 188,600 156,600 143,100 69,000 3,500 0 605,800 45,000 183,580 113,400 135,900 61,800 3,500 1,290 180,000 792,880 576,000 564,000 265,200 14,000 5,025 544,4702,397,105 Total cash payments Ending cash balance before financing Minimum cash balance desired 132,495 (40,000) 92.495 46,495 (40,000) roiected cash excess (deciencv) (69.400) (108.650) 6.49 iOriginal Budgets Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense 244,000 208,800 151,800 78,600 3,500 2,685 734,385 133,165 40,000(40,000) (40,000) 93,165 176,700 97,200 133,200 55,800 3,500 1,050 512,450 (29,400)(68,650) 792,880 576,000 564,000 265,200 14,000 5,025 2,397,105 46,495 (40,000) 6,495 188,600 156,600 143,100 69,000 3,500 183,580 113,400 135,900 61,800 3,500 1,290 544,470 132,495 (40,000) 92,495 605,800 Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deciency) Financing (69,400)(108,650) Borrowing 70,000 109,000 0 179,000 0 (93,000) (86,000(179,000) Principal repayments 70,000109,00093,000) (86,000) Total effects of financing $ 40,600$40,350$ 40,165 $ 46,495 46,495 Ending cash balance More Info 60% in the quarter of the sale 20% in quarter after the sale 18% two quarters after the sale 2% never collected Print Done Reference Applied Learning Sales Budget For the Year Ended December 31, 2019 Second Quarter First Third Fourth Quarter Quarter Quarter Tota 350 800 $ 1,300 850 800 $ 3,400 800 Budgeted tablets to be sold Sales price per unit Total sales 900 800 $ 800 $ $ 720,000$280,000$ 1,040,000$ 680,000$ 2,720,000 Applied Learning had prepared the following sales budget, schedule of budgeted cash receipts, and cash budget for 2019 EEB (Click the icon to view the original budgets.) Suppose a change in the receipt of cash from sales on account is as follows: (Click the icon to view the revised receipt of cash information.) Applied Learning decided to revise its sales budget to show fourth quarter sales of 850 tablets due to the expectation of increased holiday sales Read the requirements (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 a box is not used in the table, leave the box empty; do not enter a zero. Round your answers to the nearest dollar.) Schdule of Cash Receipts from Customers First Second Third Fourth Quarter QuarterQuarter Quarter Total Total sales First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 st Qtr.-Cash sales 1st Qtr.-Credit sales collected in 1st qtr Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.-Cash sales st 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 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? Applied Learning will need to borrowunds because of the expense and in cash receipts. This will result in V of interest | in net income for the year. iOriginal Budgets Applied Learning Sales Budget For the Year Ended December 31, 2019 Second Quarter First Third Fourth Quarter Quarter Quarter Total 350 800 $ 900 600 3,150 800 Budgeted tablets to be sold Sales price per unit Total sales 1,300 800 $ 800 $ 800 $ $720,000 $ 280,000$1,040,000$ 480,000$ 2,520,000 Schdule of Cash Receipts from Customers First Second Third Fourth uarter QuarterQ QuarterQuarter Total Total sales $ 720,000$ 280,000 $ 1,040,000$ 480,000$ 2,520,000 Third uarter Quarter Quarter First Second Fourth QuarterQu Total Cash Receipts from Customers: Original Budgets Total sales $720,000$ 280,000 1,040,000 $ 480,000$ 2,520,000 First Secong Third Fourth QuarterQuarterQuar rter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31,2018 $ 15,000 1st Qtr.-Cash sales (30%) 1st Qtr.-Credit sales (70%), 60% collected in 1st qtr. 302,400 1st Qtr.-Credit sales (70%), 40% collected in 2nd 216,000 tr $ 201,600 2nd Qtr.-Cash sales (30%) 2nd Qtr-Credit sales (70%), 60% collected in 2nd qtr 2nd Qtr.-Credit sales (70%), 40% collected in 3rd 84,000 117,600 tr 3rd Qtr.-Cash sales (30%) 3rd Qtr.-Credit sales (70%), 60% collected in 3rd $ 78,400 312,000 436,800 3rd Qtr.-Credit sales (70%), 40% collected in 4th tr $ 291,200 Print Done Original Budgets qtr 4th Qtr.-Cash sales (30%) 4th Qtr.-Credit sales (70%), 60% collected in 4th qtr Total cash receipts from customers $ 291,200 144,000 201,600 $ 533,400 $ 403,200 $ 827,200$ 636,800 $ 2,400,600 Accounts Receivable balance, December 31, 2019: 4th Qtr.-Credit sales (70%), 40% collected in 1st qtr of 2020 $ 134,400 Applied Learning Cash Budget For the Year Ended December 31, 2019 Third Quarter $43,000$ 40,600 $ 40,350 $ 40,165$43,000 First Second Fourth Quarter Quarter Quarter Total Beginning cash balance 533,400 403,200 827,200 636,8001 2,400,600 Cash receipts Original Budgets Quarter Quarter Quarter Quarter Total Beginning cash balance Cash receipts Cash available Cash payments $43,000 $ 40,600$ 40,350$ 40,165$43,000 636,8002,400,600 676,965 2,443,600 533,400 403,200 827,200 576,400 443,800 867,550 Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense 45,000 176,700 97,200 133,200 55,800 3,500 1,050 512,450 (29,400)(68,650) 45,000 244,000 208,800 151,800 78,600 3,500 2,685 734,385 133,165 (40,000)(40,000)(40,000) 93.165 45,000 188,600 156,600 143,100 69,000 3,500 0 605,800 45,000 183,580 113,400 135,900 61,800 3,500 1,290 180,000 792,880 576,000 564,000 265,200 14,000 5,025 544,4702,397,105 Total cash payments Ending cash balance before financing Minimum cash balance desired 132,495 (40,000) 92.495 46,495 (40,000) roiected cash excess (deciencv) (69.400) (108.650) 6.49 iOriginal Budgets Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense 244,000 208,800 151,800 78,600 3,500 2,685 734,385 133,165 40,000(40,000) (40,000) 93,165 176,700 97,200 133,200 55,800 3,500 1,050 512,450 (29,400)(68,650) 792,880 576,000 564,000 265,200 14,000 5,025 2,397,105 46,495 (40,000) 6,495 188,600 156,600 143,100 69,000 3,500 183,580 113,400 135,900 61,800 3,500 1,290 544,470 132,495 (40,000) 92,495 605,800 Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deciency) Financing (69,400)(108,650) Borrowing 70,000 109,000 0 179,000 0 (93,000) (86,000(179,000) Principal repayments 70,000109,00093,000) (86,000) Total effects of financing $ 40,600$40,350$ 40,165 $ 46,495 46,495 Ending cash balance More Info 60% in the quarter of the sale 20% in quarter after the sale 18% two quarters after the sale 2% never collected Print Done Reference Applied Learning Sales Budget For the Year Ended December 31, 2019 Second Quarter First Third Fourth Quarter Quarter Quarter Tota 350 800 $ 1,300 850 800 $ 3,400 800 Budgeted tablets to be sold Sales price per unit Total sales 900 800 $ 800 $ $ 720,000$280,000$ 1,040,000$ 680,000$ 2,720,000