1. ABC Cooperative will start business this year and is computing how much cash it needs to raise in order to actualize all its budget for the coming year. Consider the following assumptions:

1. All sales will be on credit and will total Php 1,400,000
2. 75% of receivables will be collected during the year
3. All purchases will be on credit and is 65% of total sales
4. Operating expenses will be 21% of total sales (including 2% for depreciation)
5. 60% of purchases and 67% of operating expenses will be paid during the year
6. 15% of total purchases will remain unsold at the end of the year
7. A new equipment will be purchased during the year

How much cash should be raised by the Cooperative assuming that it wants a minimum cash balance of 100,000 at the end of the year.