Question
Anything Company sales budget: January - P200,000; February - P240,000; March - P300,000; April - P360,000;Cost of sales is 70% of sales. Sales are collected
Anything Company sales budget: January - P200,000; February - P240,000; March - P300,000; April - P360,000;Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Company keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is P190,000. Company has monthly fixed costs of P30,000 including P6,000 depreciation. Fixed costs requiring cash are paid as incurred. March purchases are P290,000.
a. Compute budgeted cash payments in March to suppliers of goods.
b. Compute the budgeted cash balance at the end of March.
c. Compute budgeted accounts payable for goods at the end of February.
d. Compute budgeted accounts receivable at the end of March.
e. Compute budgeted cash receipts in March.
f. Compute budgeted purchases in February
g. Compute budgeted inventory at the end of February
ASAP please. Thank you so much!
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