Requirement 1. Prepare Sharpe 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 Data table Total sales Cash Receipts from Customers: Accounts Receivable balance, December 31, 2017 1st Qtr.-Sales Total cash receipts from customers First Quarter 2018 215000 Total sales $ 215,000 Budgeted purchases of direct materials 40,150 Budgeted direct labor cost 37,400 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,000 Depreciation 1,300 Insurance and property taxes 6,900 Budgeted selling and administrative expenses: Salaries expense 6,000 Rent expense 1,000 First Quarter 2018 Insurance expense Depreciation expense Supplies expense 1,900 500 6,450 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 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: Print Done More info Capital expenditures include $35,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 85% of sales in the quarter of the sale and 15% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Income tax expense for the first quarter is projected at $42,000 and is paid in e. the quarter incurred. Sharpe Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $28,000, in Accounts Receivable g. is $15,500, and in Accounts Payable is $14,500. Print Done - Direct Labor: Total payments for direct labor Manufacturing Overhead: Total payments for manufacturing overhead Selling and Administrative Expenses: 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. Data table Total sales $ 215,000 Budgeted purchases of direct materials 40,150 Budgeted direct labor cost 37,400 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,000 Depreciation 1,300 Insurance and property taxes 6,900 Budgeted selling and administrative expenses: Salaries expense 6,000 Rent expense 1,000 Insurance expense Depreciation expense Supplies expense 1,900 500 6,450 Print Done More info Capital expenditures include $35,000 for new manufacturing equipment to be a. purchased and paid in the first quarter. Cash receipts are 85% of sales in the quarter of the sale and 15% in the b. quarter following the sale. Direct materials purchases are paid 50% in the quarter purchased and 50% in c. the next quarter. Direct labor, manufacturing overhead, and selling and administrative costs are d. paid in the quarter incurred. Income tax expense for the first quarter is projected at $42,000 and is paid in e. the quarter incurred. Sharpe Company expects to have adequate cash funds and does not f. anticipate borrowing in the first quarter. The December 31, 2017, balance in Cash is $28,000, in Accounts Receivable g. is $15,500, and in Accounts Payable is $14,500. Print Done - Review the schedule of cash payments you prepared in Requirement Sharpe 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