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Work-in-Progress Inventories: Beginning of 2018 10,000 End of 2018 5,000 Finished Goods Inventory: Beginning of 2018 15,000 End of 2018 10,000 Tax Rate 40% Instructions: Prepare a forecasted Income Statement for the year.7.4 The following are forecasts of sales and purchases for a company. Sales Purchases April P80,000 P30,000 May 90,000 40,000 June 85,000 30,000 All sales are on credit. Records show that 70 percent of the customers pay the month of the sale, 20 percent pay the month after the sale, and the remaining 10 percent pay the second month after the sale. Purchases are all paid the following month at a 2 percent discount. Cash disbursements for operating expenses in June were P5,000. Instructions: Prepare a schedule of cash receipts and disbursements for June.7.3 Shown below are the totals from 2018 period budgets. Revenue budget P100,000 Materials usage from production budget 15,000 Labor cost budget 20,000 Manufacturing overhead budget 20,000 General and administrative budget 30,000 Capital expenditure budget 20,0007.1 The I. M. Broke Co. has the following collection pattern for its accounts receivable. 40 percent in the month of sale 50 percent in the month following the sale 8 percent in the second month following the sale 2 percent uncollectible The company has recent credit sales as follows: April: P200,000 May: 420,000 June: 350,000 Instruction: Determine the expected collections on its receivable for the month of June.7.2 Barnes Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product: Product Material X Material Y Material Z A B NNN WNN The company has a policy of maintaining an inventory of finished goods on all three products equal to 25 percent of the next month's budgeted sales. Listed below is the sales budget for the first quarter of 2006: Month Product A Product B Product C Jan. 10,000 11,000 12,000 Feb. 9,000 12,000 8,000 Mar. 11,000 10,000 10,000 Instructions: 1. Assuming that the company meets its required inventory policy, prepare a production budget for the first 2 months of 2007 for each of the three products. 2. Assume further the following: Unit costs of materials X, Y, and Z are respectively P4 P3, and P5. The Barnes Company has a policy of maintaining its raw material inventories at 50 percent of the next month's production needs. Assuming that this policy is satisfied, prepare a material purchases budget for all three materials in both pounds and in peso for January
