Scholastic Learning Sales Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tablets to be sold 450 750 1.200 650 3,050 450 450 450lls Sales price per unit 202.500 $ 337,500 $ 540.000 $ 292,500 $ 1,372,500 Total sales 162,000 113,400 $ 284,600 3rd Qtr.Cash sales (30%) 3rd Qtr. Credit sales (70%), 30% collected in 3rd qtr. 3rd Qtr. Credit sales (70%), 70% collected in 4th qtr. 4th Qtr.Cash sales (309) 4th Qtr. Credit sales (70%). 30% collected in 4th qtr. Total cash receipts from customers 87,750 61,425 440,775 $ 413,775 $ 1,259,175 $ 133,275 $ 271,350 $ Accounts Receivable balance, December 31, 2019: 4th Qtr.Credit sales (70%). 70% collected in 1st qtr of 2020 $ 143,325 Scholastic Learning Cash Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning cash balance Cash receipts 22,000 $ 133,275 20.933 $ 271,350 20,485 $ 440,775 20,065 $ 413,775 22,000 1,259,175 155,275 292,283 461,240 433,840 1,281,175 Cash available Cash payments: Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses 10,000 58,232 14,000 17,835 81,775 2,500 10,000 181.888 37,200 20.155 65,825 10,000 238,080 39,200 20,355 71,900 2,500 1,140 10,000 229,808 29,200 19,355 40,000 705,808 119,600 77,700 283,975 10,000 1,830 64.475 Income taxes 2.500 2,500 240 450 Interest expense 317.818 381,175 355,578 1,218.913 Total cash payments Ending cash balance before financing Minimum cash balance desired 164,342 (9,087) (20.000) (25,535) (20,000) 80,085 (20.000) 80,085 78,262 (20,000) 58,262 62,262 (20.000) 42,262 (29,087) (45,535) Projected cash excess (de Ociency) Financing: Borrowing 30,000 46.000 78,000 (76.000) ON Principal repayments Total effects of Ofinancing 30,000 20,933 $ 48.000 20.465 $ (60,000) (60.000) 20,085 $ (16,000) (16,000) 62,262 62,262 Ending cash balance Scholastic Learning Sales Budget For the Year Ended December 31, 2019 First Second | Third Fourth Quarter Quarter Quarter Quarter Total 750 1.200 900 3,300 450 $ 450 S 450 $ 450 $ 202,500 $ 337,500 $ 540,000 $ 405,000 $1,485,000 Budgeted tablets to be sold 450 Sales price per unit Total sales Scholastic Learning had prepared the following sales budget, schedule of budgeted cash receipts, and cash budget for 2010 (Click the icon to view the original budgets.) Suppose a change in the receipt of cash from sales on account is as follows: (Click the icon to view the revised receipt of cash information.) Scholastic Learning decided to revise its sales budget to show fourth quarter sales of 900 tablets due to the expectation of increased holiday sales. (Click the icon to view the revised sales budget.) Read the requirements. Requirement 1. Revise the schedule of budgeted cash receipts to include the increase in fourth quarter sales and the change in the timing of customer receipts. (If a box is not used in the table, leave the box empty: do not enter a zero. Round your answers to the nearest dollar.) Schdule of Cash Receipts from Customers First Second Third Fourth i - More Info X X 0 - Requirements Quarter Quarter Quarter Quarter Total Total sales First | Fourth Second Quarter Third Quarter 1. Revise the schedule of budgeted cash receipts to include the increase in fourth quarter sales and the change in the timing of customer receipts. 2. How will the changes in cash receipts affect the cash budget? Quarter Quarter Total 30% in the quarter of the sale 35% in quarter after the sale 33% two quarters after the sale 2% never collected Cash Receipts from Customers: Print Done Print Done Accounts Receivable balance, December 31, 2018 1st Atr.-Cash sales 1st Qtr.-Credit sales collected in 1st qtr. 1st Qtr.-Credit sales collected in 2nd qtr. 1st Qtr.-Credit sales collected in 3rd qtr. 2nd Qtr.Cash sales 2nd QtrCredit sales collected in 2nd qtr. A More Info -XL 0 Requirements 1. Revise the schedule of budgeted cash receipts to include the increase in fourth quarter sales and the change in the timing of customer receipts. 2. How will the changes in cash receipts affect the cash budget? 2nd Qtr.Cash sales 2nd Qtr.Credit sales collected in 2nd qtr. 2nd Qtr.-Credit sales collected in 3rd qtr. 2nd Qtr.Credit sales collected in 4th qtr. 3rd Qtr.-Cash sales 3rd Qtr.-Credit sales collected in 3rd qtr. 3rd Qtr.-Credit sales collected in 4th qtr. 4th Qtr. Cash sales 4th Qtr. Credit sales collected in 4th qtr. Total cash receipts from customers 30% in the quarter of the sale 35% in quarter after the sale 33% two quarters after the sale 2% never collected Print Done Print Done Requirement 2. How will the changes in cash receipts affect the cash budget? Scholastic Learning will need to borrow funds because of the in cash receipts. This will result in of interest expense and in net income for the year