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.

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