26. Digna Company had the following transactions in 19x7, their first year of operations Sales (90% collected in 1997) P1,500,000 Bad debts write-offs 60,000 Disbursements for cost and expenses 1,200,000 Disbursement for income taxes 90,000 Purchase of fixed assets 400,000 Depreciation of fixed assets 80,000 Proceeds from issuance of common stock 500,000 Proceeds from short-term borrowings 100,000 Payments on short-term borrowings 50,000 What is the cash balance at December 31, 19x7? a. P210,000. b. P150,000. C. P280,000. d. P170,000 Questions 27 thu 30 are based on the following information. For purposes of preparing the cash projections and other budget estimates for the third quarter of 1988, the following information is presented to you by the management of Virgo Corporation: Second Quarter Sales Data: Pesos Units April P 530,000 10,600 May 550,000 11,000 June 570,000 11,400 Projected sales for the next four months Pesos Units July 540,000 10,800 August 550,000 11,000 September 560,000 11.200 October 580,000 11,600 All sales are on charge basis and billed at the end of the month. A 5% discount is given on collections within the 15 days from billing date. Sales collections are generally made as follows: 70% within the month following the billing date with 40% of this being collected within the discount period. 27% on the second month following the billing date. 3% considered uncollectible Merchandise purchases are generally paid as follows: 50% within the month they are incurred. 50% after the month they are incurred Ending inventory in units (cost per unit is P40) is 30% higher than the following month's sales in units. Operating expenses are on cash basis and are estimated to be 15% of the current month's sales including monthly depreciation of P10,000. As of June 30, 1988, Accounts Receivable balance was P630,000 and Merchandise Inventory was P565,000. 27. The budgeted cash collections for the month of July would be a. P547,500 b. P539,520 C. P556,020 d. P391,020 28. The budgeted cash payments of the month of September would be a. P518,000 b. P533,600 C. P468,800 d. P459,600