Requirement 1. Prepare Haney 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.

Total Sales	217,000
Direct Materials	40,750
Direct Labor Cost	36,500
Manufacturing Overhead Costs
Variable manufacturing overhead	1,119
Depreciation	600
Insurance and Property Taxes	6,750
Budgeted selling and admin expenses
Salaries expense	8,000
Rent expense	4,500
Insurance Expense	1,100
Depreciation Expense	250
Supplies Expense	10,850

a.	Capital expenditures include $36,000 for new manufacturing equipment to be purchased and paid in the first quarter.

b.	Cash receipts are 85% of sales in the quarter of the sale and 15% in the quarter following the sale.

c.	Direct materials purchases are paid 70% in the quarter purchased and 30% 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 $44,000 and is paid in the quarter incurred.

f.	Haney 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 $10,000,in Accounts Receivable is $22,500,and in Accounts Payable is

$12,500.