Need help with Cash Receipts Please

Reference Gavin Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total udgeted tires to be sold 1,200 5,200 1,000 70||$ 5 1,400 70 $ 1,600 70||$ 70 S 70 Sales price per unit $ 70,000 $ 84,000 $ 98,000 $ 112,000 $ 364,000 Total sales Print Done More Info (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) a. Budgeted sales are 1,000 tires for the first quarter and expected to increase by 200 tires per quarter. 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, 2024 consists of 300 tires at S36 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2026 are expected be 1,800 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2024. consists of 750 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2.5 pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound f. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2025 is 750 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Each tire requires 0.30 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per tire. i Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $10,860 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $8,000 per quarter for salaries: 54,800 per quarter for 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 the first quarter m. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: December 31, 2024, Accounts Payable is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. 9. Gavin desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the Prepare the cash receipts budget. (If an input field is not used in the table leave the input field empty, 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 364000 First Second Third Fourth Quarter Quarter Quarter Quarter Total 30000 7000 63000 Cash Receipts from Customers: Accounts Receivable balance, December 31, 2024 1st Qtr-Cash sales 1st Qtr - Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr-Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qtr-Cash sales 2nd Qtr-Credit sales, collection of Qtr. 2 sales in Qtr 2 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 3 3rd Qtr.-Cash sales 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 4 4th Qtr.---Cash sales 4th Qtr.-Credit sales, collection of Qtr. 4 sales in Qtr 4 Total cash receipts from customers