The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $80 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: E: (Click the icon to view the balance sheet.) Other data for Giseppe Tire Company: A (Click the icon to view the other data.) Read the requirements. Giseppe Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Giseppe Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1,750 1,900 1,600 700 2,050 880 7,300 880 760 820 Plus: Desired tires in ending inventory Total tires needed 2,930 2,510 700 2,300 200 2,100 2,720 760 8,180 200 Less: Tires in beginning inventory 820 1,810 1,960 2,110 7,980 Budgeted tires to be produced Giseppe Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total $ 14,000 $ 3,600 14,000 3,600 Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense 14,000 $ 3,600 900 1,000 3,840 900 14,000 3,600 900 1,000 4,560 900 56,000 14,400 3,600 4,000 17,520 1,000 4,200 1,000 4,920 Total budgeted selling and administrative expense S 23,340 S $ 23,700 23.700 | $ 24,060 $ 24,420 $ 95,520 Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales $ 584,000 128,000 $ 140,000 $ 152,000 $ 164,000 $ First Second Third Fourth Quarter Quarter || Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.Cash sales $ 25,000 12,800 69,120 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 46,080 14,000 75,600 $ 50,400 15,200 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 15,200 82,080 $ 54,720 116,400 88,560 147,680||$ 159,680 || $ T L Total cash receipts from customers | $ 106,920|| $ 135,680||$ 549,960 Accounts Receivable balance, December 31, 2019: 4th Qtr.Credit sales, collection of Qtr. 4 sales in Qtr. 1 of 2020 $ 59,040 Cash Payments First Second Third Fourth Quarter Quarter Quarter Quarter Total Total direct materials purchases 151,620 49,856$ 35,530|| $ 38,380 $ 27,854 $ First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Payments $ 15,000 39,885 $ Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr.Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr.Qtr. 3 direct material purchases paid in Qtr. 4 9,971 28,424 $ 7,106 30,704 $ 7,676 4th Qtr.Qtr. 4 direct material purchases paid in Qtr. 4 22,283 29,959$ 54,885 38,395 37,810 161,049 Total payments for direct materials Direct Labor: Total payments for direct labor 16,800|| 14,480 15,680 || 16,880 || 63,840 Manufacturing Overhead: Variable manufacturing overhead 2,110 Utilities, insurance, property taxes Total payments for manufacturing overhead 2,100 14,157 16,257 1,810 14,157 15,967 1,960 14,157 16,117 14,157 16,267 7,980 56,628 64,608 Selling and Administrative Expenses: Salaries Expense 14,000|| 14,000|| 3,600 14,000|| 3,600 14,000|| 3,600 56,000 14,400 Rent Expense 3,600 Insurance Expense 900 900 900 900 3.600 900 900 3,600 Insurance Expense Supplies Expense Total payments for Selling and Admin. expenses 900 3,840 22,340 900 4,200 22,700 4,560 23,060 4,920 23,420 17,520 91,520 Income Taxes: Total payments for income taxes | 3,500|| 3,500 3,500 || 3,500 || 14,000 Capital Expenditures: Total payments for capital expenditures 30,000 30,000 $ 143,782 $ 95,042 $ 96,167| $ 90,026 $ 425,017 Total cash payments (before interest) Accounts Payable balance, December 31, 2019: 4th Qtr.Qtr. 4 direct material purchases paid in Qtr. 1 of 2020 $ 5,571 Giseppe Tire Company Cash Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning cash balance $ 70,000 $ 106,920 70,138 $ 135,680 73,221 | $ 147,680 124,734 $ 159,680 70,000 549,960 176,920 205,818 220,901 284,414 619,960 Cash receipts Cash available Cash payments: Capital expenditures 30,000 Purchases of direct materials 38,395 161,049 30,000 54,885 16,800 16,257 22,340 29,959 16,880 Direct labor Manufacturing overhead Selling and administrative expenses 14,48 15,967 37,810 15,680 16,117 23,060 3,500 22,700 63,840 64,608 91,520 14,000 555 Income taxes 3,500 3,500 3,500 555 Interest expense Total cash payments 143,782 95,597 96,167 90,026 425,572 Ending cash balance before financing 33,138 (70,000) 110,221 (70,000) 124,734 (70,000) 194,388 (70,000) 194,388 (70,000) Minimum cash balance desired (36,862) 40,221 54,734 124,388 124,388 Projected cash excess (de ciency) Financing: Borrowing 37,000 37,000 (37,000) Principal repayments (37,000) Total effects of financing 37,000 (37,000) 70,138 $ 73,221 $ 124,734 $ 194,388 194,388 Ending cash balance Giseppe Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue 584,000 Cost of Goods Sold 266,660 Gross Profit 317,340 Selling and Administrative Expenses 95,520 Operating Income 221,820 Interest Expense 555 Income before Income Taxes 221,265 14,000 Income Tax Expense $ 207,265 Net Income