Requirements

Prepare Sosa Company's schedule of cash receipts from customers and

schedule of cash payments for the first quarter of $2025.$

Prepare Sosa Company's cash budget for the first quarter of $2025.$

Budget Information

Additional Data

a$.$ Capital expenditures include $$41,000$ 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 $60\%$ in the quarter purchased and $40\%$ 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 $$47,000$ and is paid in

the quarter incurred.

f$.$ Sosa Company expects to have adequate cash funds and does not anticipate

borrowing in the first quarter.

g$.$ The December $31,2024,$ balance in Cash is $$15,000,$ in Accounts Receivable

is $$21,600,$ and in Accounts Payable is $$11,600.$