Question

haney company has provided the following budget information for the first quarter of 2018:

Haney Company has provided the following budget information for the first quarter of 2018 (Click the loon to view the budget information.) Additional data related to the first quarter of 2018 for Haney Company (Click the icon to view the data.) Read the requirements Requirement 1. Prepare Haney Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2018 Begin by preparing the schedule of cash receipts from customers for the first quarter of 2018, Cash Receipts from Customers First Quarter 2010 213.000 Cash Receipts from Customers Accounts Receivable balance, December 31, 2017 1st Qtr-Sales Totalcarce rom customers Accounts Receivable balance, March 31, 2018 tot Sale in 2nd O

Answer 1

1.

Cash Receipts from Customers
	First Quarter 2018
Total sales	213000
Cash Receipts from Customers:
Accounts Receivable balance, December 31, 2017	25400
1st Qtr.-Sales (85% x $213000)	181050
Total cash receipts from customers	206450
Accounts Receivable balance, March 31, 2018
1st Qtr.-Sales, collected in 2nd Qtr. (15% x $213000)	31950
Cash Payments
	First Quarter 2018
Total direct materials purchases	41150
Cash Payments
Direct Materials:
Accounts Payable balance, December 31, 2017	17300
1st Qtr.-Direct material purchases (50% x $41150)	20575
Total payments for direct materials	37875
Direct Labor:
Total payments for direct labor	37000
Manufacturing Overhead:
Variable manufacturing overhead	1100
Insurance and property taxes	6950
Total payment for manufacturing overhead	8050
Selling and Administrative Expenses:
Salaries expense	10000
Rent expense	3000
Insurance expense	1500
Supplies expense	8520
Total payments for Selling and Admin. Expenses	23020
Income Taxes:
Total payments for income taxes	43000
Capital Expenditures:
Total payments for capital expenditures	40000
Total cash payments	188945
Accounts Payable balance, March 31, 2018
1st Qtr.-Direct materials purchases, paid in 2nd Qtr.	20575
(50% x $41150)

Note: Depreciation being a non-cash expense is excluded from the cash payments.

2.

Haney Company
Cash Budget
For the Quarter Ended March 31, 2018
Beginning cash balance	14000
Cash receipts	206450
Cash available	220450
Cash payments:
Purchases of direct materials	37875
Direct labor	37000
Manufacturing overhead	8050
Selling and administrative expenses	23020
Income taxes	43000
Capital expenditures	40000
Total cash payments	188945
Ending cash balance	31505