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

Requirements
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.

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MATA BATTING COMPANY Balance Sheet December 31, 2014 Assets Current Assets Cash Accounts Recevable Raw Materials Inwentory Finished Goods Inventory Total Current Assets s 30,000 22,500 11,000 20,250 s 83.750 Property, Plant, and Equipment Equipment Less: Accumuated Depreciation 125,000 75,000 $158,750 50,000) Total Assets Liabilities Current Liabilities: Accounts Payable S 12,500 Stockholders' Equity 100,000 46.250 Common Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 146,250 S158,750