Refer to Problem P22- 47B. Additional data for Beta 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 $ 60,000 and is paid in the quarter incurred.

f. Beta expects to have adequate cash funds and does not anticipate borrowing in the first quarter.

P22- 47B

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

BETA BATTING COMPANY Balance Sheet December 31, 2014 Assets Current Assets: Cash Accounts Recevable Raw Materials Inwentory Finished Goods Inventory Total Current Assets 30,000 24,500 13,000 21,000 $ 88,500 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 125,000 (50,000) 75,000 163,500 Total Assets Liabilities Current Liabilities: Accounts Payable 14,000 Stockholders' Equity 100,000 49,500 Common Stock Retained Earnings Total Stockholders Equity Total Liabdities and Stodholders' Equity 149,500 S 163,500