Scribd
Upload
11 views3 pages

Marquez 08 Quiz

Uploaded by

marquezzeuqram1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views3 pages

Marquez 08 Quiz

Uploaded by

marquezzeuqram1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Marquez, Rico Angelo D.

Managerial Accounting

BSBAOM 501 Professor Erwin Santos

The budget is based on the following assumptions:


a. Sales
1. Sixty percent (60%) of the billings are collected within the month of sale, 25% are
collected in the first month after the month of sale, 10% are collected in the
second month after the month of sale, and 5% are proved uncollectible.
b. Purchases
1. Sixty-five percent (65%) of all purchases of materials and selling and
administrative expenses are paid in the month purchased and the remainder
in the following month.
2. Each month’s units of ending inventory is equal to 120% of the next month’s
units of sales.
3. The cost of each unit of inventory is P20.00.
4. Selling and administrative expenses are equal to 20% of the current month’s sales.

Actual and projected sales are as follows:


Month In pesos In units
June P708,00 23,600
0
July 726,000 24,200
August 714,000 23,800
Septemb 684,000 22,800
er
October 720,000 24,000
Novembe 732,000 24,400
r

Required (15 items x 5 points):

Prepare cash budget for August, September and October, 201A, based on the above data and
supported by the following schedules:
a. Cash receipts from accounts receivable 4 items
August September October
June (P708,000 x 60%) P424,800
July
P726,000 x 60% 435,600
P726,000 x 25% 181,500
P726,000 x 10% 72,600
August
P714,000 x 60% 428,400
P714,000 x 25% 178,500
P714,000 x 10% P71,400
September
P684,000 x 60% 410,400
P684,000 x 25% 171,000

b. Purchases of inventory

August September October


Expected sales in units 23,800 22,800 24,000
Desired Ending Inventory 27,360 28,800 29,280
Total 51,160 51,600 53,280
Expected beginning inventory 28,560 27,360 28,800
Purchases in units 22,600 24,240
24,480
Unit cost P20 P20 P20

June (24,200 x 1.20) 29,040 units


July (23,800 x 1.20) 28,560 units
August (22,800 x 1.20) 27,360 units
September (24,000 x 1.20) 28,800 units
October (24,400 x 1.20) 29,280 units
c. Cash disbursements on
accounts payable
August September October
July (474,400 x 35%) P166,040
August
P452,000 x 65% 293,800
P452,000 x 35% P158,200 315,120
September
P484,800 x 65%
P484,800 x 35% P169,680 318,240
October (P489,600 x 65%)

July
Expected Sales in Units 24,200
Desired Ending Inventory 28,560 Total
52,760
Expected Beginning Inventory 29,040
Purchases in Units 23,720
Unit Cost P20
Total Purchase Cost P474,400
d. Cash disbursements on selling and administrative expenses

August September October

July (726,000 x 20% x 35%) P50,820

August

P714,000 x 20% x 65% 92,820


P714,000 x 20% x 35% P49,980
September

P684,000 x 20% x 65% 88,920


P684,000 x 20% x 35% 47,880
October (P720,000 x 20% x 65%) 93,600

Total P143,640 P138,900 P141,480


e. Cash budget

August September October

Beginning cash balance P22,000 P460,420 P527,700


Cash receipt 1,041,900 679,500 481,800
481,800
Total cash available P1,063,900 P1,139,920 P1,009,500
Disbursements:
Cash disbursements 459,840 473,320 489,600
Selling and administrative 143,640 138,900 141,480
Expenses
Total cash needed 603,480 612,220 631,080
Ending cash balance

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy