Refer to Problem P22- 47B. Additional data for Beta Batting Company: a. Capital expenditures include $ 40,000

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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


Refer to Problem P22- 47B. Additional data for Beta Batting



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.

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment.  Its primary purpose is to provide the...
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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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