Prepare the cash receipts budget.

Cash Receipts from Customers
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Total sales		112000	128000	144000	160000	544000
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Cash Receipts from Customers:
Accounts Receivable balance, December 31, 2018		35000
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
Accounts Receivable balance, December 31, 2019:
4th Qtr.Credit sales, collection of Qtr. 4 sales
in Qtr. 1 of 2020

ADDTIONAL INFO

Capital expenditures includes 10,000 for new manufacturing equipment, to be purchased and paid in the first quarter.

Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes.

Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; December 31 2018, Accounts Payable is paid in the first quarter of 2019

o.	Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred.

Income tax expense is projected at 4000 per quarter and is paid in the quarter incurred.