Refer to Problem P22- 38A. Additional data for Mata Batting Company:
a. Capital expenditures include $ 40,000 for new manufacturing equipment to be purchased and paid in the first quarter.
b. Cash receipts are 75% of sales in the quarter of the sale and 25% in the quarter following the sale.
c. Direct materials purchases are paid 50% in the quarter purchased and 50% 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 $ 45,000 and is paid in the quarter incurred.
f. Mata expects to have adequate cash funds and does not anticipate borrowing in the first quarter.
P22- 38A

1. Prepare Mata’s schedules for cash receipts from customers and cash payments for the first quarter of 2015.
2. Prepare Mata’s cash budget for the first quarter of2015.

  • CreatedJanuary 16, 2015
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