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a.	Capital expenditures include $42,000 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 50% in the quarter purchased and 50% 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 $43,000 and is paid in the quarter incurred.
f.	Humble 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 $9,000.

Data Table

Total sales	$208,000
Budgeted purchases of direct materials	41,000
Budgeted direct labor cost	37,300
Budgeted manufacturing overhead costs:
Variable manufacturing overhead	1,150
Depreciation	1,000
Insurance and property taxes	6,500
Budgeted selling and administrative expenses:
Salaries expense	11,000
Rent expense	2,000
Insurance expense	1,500
Depreciation expense	450
Supplies expense	6,240

Requirement 1. Prepare

Humble Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018.

Begin by preparing the schedule of cash receipts from customers for the first quarter of 2018.

Cash Receipts from Customers
		First Quarter
		2018
Total sales		$
Cash Receipts from Customers:
Accounts Receivable balance, December 31, 2017		$
1st Qtr.Sales
Total cash receipts from customers		$
Accounts Receivable balance, March 31, 2018:
1st Qtr.Sales, collected in 2nd Qtr.		$

Prepare the schedule of cash payments for the first quarter of

2018.

Cash Payments
		First Quarter
		2018
Total direct materials purchases		$
Cash Payments
Direct Materials:
Accounts Payable balance, December 31, 2017		$
1st Qtr.Direct material purchases
Total payments for direct materials
Direct Labor:
Total payments for direct labor

Manufacturing Overhead:		$
Variable manufacturing overhead
Insurance and property taxes
Total payments for manufacturing overhead
Selling and Administrative Expenses:
Salaries Expense
Rent Expense
Insurance Expense
Supplies Expense
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, 2018
1st Qtr.Direct materials purchases, paid in 2nd Qtr.		$

Requirement 2. Prepare

Humble Company's cash budget for the first quarter of 2018.

Review the schedule of cash receipts from customers you prepared in Requirement 1.

Review the schedule of cash payments you prepared in Requirement 1.

Humble Company
Cash Budget
For the Quarter Ended March 31, 2018
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		$