case. Assume that Sky$$s the Limit Parachute Company$$s budgeted income statement is as follows:

Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Profit

Budgeted Net Operating Income

Quarter $1$ $$40,000,000$

$$15,600,000$ $$24,400,000$

$$19,900,000$

Quarter $2$ $$35,000,000$

$$13,650,000$ $$21,350,000$

$$17,350,000$

Quarter $3$ $$45,000,000$

$$17,550,000$ $$27,450,000$

$$22,450,000$

Quarter $4$ $$50,000,000$

$$19,500,000$ $$30,500,000$

$$25,000,000$

Budgeted Selling and Admin Expenses

$$4,500,000$

$$4,000,000$

$$5,000,000$

$$5,500,000$

Budgeted sales revenue is collected as follows:

$60\%$ of sales revenue is collected in cash

$$ The remainder of sales is on credit and is collected as follows:

o During the quarter of sale, $35\%$

o During the quarter following the sale, $60\%$ o Uncollected,$5\%$

Cost of Goods Sold $($Manufacturing costs$)$ consists of the following:

$$ Materials purchases represent $70\%$ of Cost of Goods Sold. The company pays for $40\%$ of materials during the quarter of purchase and the remainder the next quarter.

$$ The remaining $30\%$ of Cost of Goods Sold is made up of direct labor and manufacturing overhead including $$400,000$ in depreciation $($a non$-$cash expense$).$ All of the cash payments for direct labor and overhead are paid during the quarter they are incurred.

$$ Selling and Administrative expenses are paid in the quarter after they are incurred. Required:

$1.$ Prepare the cash receipts schedule for Quarter $3$ using Microsoft Excel. Use formulas in excel to make all calculations. You can review the practice problem in this unit for an example.

$2.$ Prepare the cash payments schedule for Quarter $3$ using Microsoft Excel. Use formulas in excel to make all calculations. You can review the practice problem in this unit for an example.Assume that Sky$\text{'}$s the Limit Parachute Company's budgeted income statement is as follows:

$\backslash$table$[[,$Quarter $1,$Quarter $2,$Quarter $3,$Quarter $4],[\backslash$table$[[$Budgeted Sales$],[$Revenue$]],$$$40,000,000,$$$35,000,000,$$$45,000,000,$$$50,000,000$