Homework: Chapter 22 Homework Save Score: 0.03 of 1 pt 5 of 6 (5 complete) HW Score: 63.66%, 3.82 of 6 pts WP22-39A (similar to) More Info Sharpe Company has provided the following budget infomation for the first quarter o (Click the icon to view the budget information.) Requirement 1. Prepare Sharpe Company's schedule of cash receipts from custome Begin by preparing the schedule of cash receipts from customers for the first quarter Cash Receipts from Customers First Quarter a. Capital expenditures include $38,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 60% of sales in the quarter of the sale and 40% in the quarter following the sale. c. Direct materials purchases are paid 60% in the quarter purchased and 40% 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 $40,000 and is paid in the quarter incurred. f. Sharpe Company expects to have adequate cash funds and does not anticipate borrowing in the first quarter. g. The December 31, 2017, balance in Cash is $40,000, in Accounts Receivable is $22,800, and in Accounts Payable is $12,800 2018 Print Done Total sales S S Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 215,000 40,450 37.100 1st Qtr.-Sales Total cash receipts from customers 1,119 1,000 i Requirements Total sales Budgeted purchases of direct materials Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense 6,800 7,000 1. Prepare Sharpe Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018. 2. Prepare Sharpe Company's cash budget for the first quarter of 2018. 2,000 1,900 400 Print Done 8,600 Paperclip Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 15,000 18,000 Accounts Receivable Merchandise Inventory 28,000 1,300 $ 62,300 Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures 55,000 (23,000) Less: Accumulated Depreciation 32,000 $ 94,300 Total Assets $ 94,300 Total Assets Liabilities Current Liabilities: Accounts Payable $ 12,000 2,400 Salaries and Commissions Payable Total Liabilities $ 14,400 Stockholders' Equity Common Stock, no par 12,000 67,900 Retained Earnings Total Stockholders' Equity 79,900 $ 94,300 Total Liabilities and Stockholders' Equity Homework: Chapter 22 Homework Save Score: 0.03 of 1 pt 5 of 6 (5 complete) HW Score: 63.66%, 3.82 of 6 pts WP22-39A (similar to) More Info Sharpe Company has provided the following budget infomation for the first quarter o (Click the icon to view the budget information.) Requirement 1. Prepare Sharpe Company's schedule of cash receipts from custome Begin by preparing the schedule of cash receipts from customers for the first quarter Cash Receipts from Customers First Quarter a. Capital expenditures include $38,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 60% of sales in the quarter of the sale and 40% in the quarter following the sale. c. Direct materials purchases are paid 60% in the quarter purchased and 40% 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 $40,000 and is paid in the quarter incurred. f. Sharpe Company expects to have adequate cash funds and does not anticipate borrowing in the first quarter. g. The December 31, 2017, balance in Cash is $40,000, in Accounts Receivable is $22,800, and in Accounts Payable is $12,800 2018 Print Done Total sales S S Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 215,000 40,450 37.100 1st Qtr.-Sales Total cash receipts from customers 1,119 1,000 i Requirements Total sales Budgeted purchases of direct materials Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense 6,800 7,000 1. Prepare Sharpe Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018. 2. Prepare Sharpe Company's cash budget for the first quarter of 2018. 2,000 1,900 400 Print Done 8,600 Paperclip Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 15,000 18,000 Accounts Receivable Merchandise Inventory 28,000 1,300 $ 62,300 Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures 55,000 (23,000) Less: Accumulated Depreciation 32,000 $ 94,300 Total Assets $ 94,300 Total Assets Liabilities Current Liabilities: Accounts Payable $ 12,000 2,400 Salaries and Commissions Payable Total Liabilities $ 14,400 Stockholders' Equity Common Stock, no par 12,000 67,900 Retained Earnings Total Stockholders' Equity 79,900 $ 94,300 Total Liabilities and Stockholders' Equity