Homework: Project 2 1 of 1 (1 complete Ecore: 44.37 of 100 pts BP22-50B (book/static) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is Olher data for Gavin Tire Company planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December (Click the icon to view the other data 31, 2018, follows Read the requirements (Click the icon to view the balance sheet.) Prepare the cash receipts budget. (If an input field is not used in the table leave the input field emply do not enter a zero) Review.the sales budget you prepared above. Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales 70000 84000 98000 112000 384000 First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Enter any number in the edit fields and then click Check Answer. Clear All 10 parts remaining Type here to search O 99 i More Info (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) Budgeted sales are 1,000 tires for the first quarter and expected to increase by 200 tires per quarters a. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account: b. Finished Goods Inventory on December 31, 2018 consists of 300 tires at $36 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales tor 2020 o. are expected be 1,800 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 750 pounds of rubber compound used to d. manufacture the tires. Direct materials requirements are 2.50 pounds of a rubber compound per tire. The cost of the e compound is $4.00 per pound. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 750 pounds; indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.30 hours direct labor; direct labor costs average $20 per hour. Print Done 1 of 1 (1 complete) More Info Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 750 pounds; indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.30 hours of direct labor, direct labor costs average $20 per hour h. Variable manufacturing overhead is $3 per tire. Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $10,860 per quarter for i. other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $8,000 per quarter for salaries: $4,800 per quarter for 1 rent: $1,950 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in I. the first quarter Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible m accounts are considered insignificant and not considered for budgetina nurses Print Done 1 of 1 (1 complete) i More Info X vanare semng anu aurusuave experises me supplies at 2701 Sales Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in 1. the first quarter. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: n. December 31, 2018, Accounts Payable is paid in the first quarter of 2019. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter o. incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. Gavin desires to maintain a minimum cash balance of $20,000 and borrows from the local bankas needed in increments of $1,000 at the beginning of the quarter: principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous q. quarter. Print Done Current Assets: Cash $ 20,000 Accounts Receivable Raw Materials Inventory 30,000 3,000 10,800 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment $ 63,800 Less: Accumulated Depreciation 168,000 (39,000) 129,000 Total Assets $ 192,800 1.LA Quarter Uudi water 30000 49000 Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr-Cash sales 1st Qtr --Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Otr. --Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qur Cash sales 2nd Qr Credit sales, collection of Qtr 2 sales in Qtr. 2 2nd Qur-Credit sales, collection of Olr2 sales in Qtr. 3 3rd Qur-Cash sales (Click the sconto Read the requirements planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) do Credit sales, collection of our 3 salos in our 3 3rd Qur-Credit sales, collection of Otr. 3 sales in Qtr. 4 4th Or-Cash sales 4th Qu --Credit sales, collection of Atr. 4 sales in otr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr-Credit sales, collection of Qtr. 4 sales in Or 1 af 2020