1.Derick Inc. has projected sales to be P 260,000 in June, P 270,000 in July and P 300,000 in August. Derick collects 50% of a month's sales in the month of sale, 30% in the month following the sale, and 20% in the second month following the sale. What is the accounts receivable balance on August 31? 2. Henry Company manufactures a single product. Henry keeps inventory of raw materials at 50% of the coming month's budgeted production needs. Each unit of product requires three pounds of materials. The production budget is, (in units): May, 1000; June, 1,200;J uly, 1,400; August, 1,600. Determine the raw materials purchases in July in pounds. 3. Olivette Co. has projected sales to be P 60,000 in January, P 75,000 in February, and P 80,000 in March. Olivette wants to have 25% of next month's sales needs on hand at the end of a month. If Olivette has an average gross profit of 50%, what are the February purchases? 4. Jerry Company plans to sell 24,000 units of Product A in July and 30,000 units in August. Sales of Product A during June were 25,000 units. Past experience has shown that endofmonth inventory must equal 3,000 units plus 30% of the next month's sales. On June 30, this requirement was met. Based on these data, how many units of Product A must be produced during the month of July? 5. Jasper Company, a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: Budgeted data: Cost of goods sold: P 1,680,000 ; Desired increase in inventories: P70,000 ; Desired increase in accounts payable: P150,000 All of the accounts payables are for inventory purchases and all inventories are purchased on account. What are the estimated cash disbursements for inventories for the budget period? 6. Lawrence Company has budgeted sales on account of P 120,000 for July, P 211,000 for August, and P 198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% the second month, and 4% will be uncollectible. The cash from accounts receivable that should be budgeted for September would be? 7. Venus Company projected the following activities: a. Issuance of share's of company's own common stock: P 170,000 b. Dividends to be paid to the company's own shareholders: P 7,000 c. Interest to be paid on the company's own bonds: P 11,000 d. Repayment of principal on the company's own bonds: P 40,000 e. Proceeds from sale of the company's used equipment: P 23,000 f. Purchase of land: P 120,000 g. Stock dividend to the owners, fair value of the stocks P 250,000 h. Depreciation on the fixed assets owned P52,000 In cash financial budget, the net cash used/ provided by investing activities should be projected to be? 9 Thn ("RA {'nrh it: finali7iha if: 'Finanrial nlanc 'Fnr 'NYM hacnr'l nn fhn 'Fnllnuuina
