BUDGETED INCOME STATEMENT AND BUDGETED STATEMENT OF FINANCIAL POSITION Benito Toma Corporation is making its master budget for 2021. The Operating Budget for 2021: 1. The sales department budgeted 200,000 units @ P40.00 per unit 2. Merchandise inventory: The cost accounting department reported - merchandise inventory January 1, 2021 - 25,000 units with a cost of P20.00 per unit. Desired ending inventory is 20,000 units. (Use First In - First Out Method (FIFO)) 3. The Purchasing department projected the cost in 2021 to increase to P24.00 per unit. 4. Last year, the fixed operating expenses was P800,000 (including depreciation expense of P60,000). For 2021, they expect it to remain the same. 5. Variable operating expenses per unit - P10.00 6. Interest expense is budgeted at P120,000 (P1,000,000 x 12%) 7. Income tax rate is 30% Capital Expenditure Budget, 20211. Acquisition of additional property and equipment to be bought December, 2021 - 500,000 No depreciation expense is budgeted for this acquisition. (Useful life is 10 years, no salvage value.) Financial Resource Budget, 2021 1. Loan amortization, excluding interest, is P500,000 and paid at the end of December, 2021. The balance is due in December, 2025. 2. Budgeted to issue 3,600 shares @ P120 per share. Of the P120 issue price, the par value is P100 per share and the premium is P20 per share. (These are common shares.) 3.The terms of sale: all sales are on credit and strictly 30 days. Assume that the sales for December, 2021 is P 800,000 and therefore the accounts receivable at the end is also P800,000. 4. The terms of purchases is strictly 30 days. The balance of accounts payable at the end of 2021 is the same as the total purchases for the month of December, 2021 amounting to P400,000. 5. Budgeted cash dividends declared and paid - P100,000 6. Budgeted payment of operating expenses - P1,200,000. (With accrued operating expenses) 7. Payment for budgeted interest expense - P120,000. 8. The estimated unpaid income tax - P80,000. (For the 4" quarter, 2021 ITR)Last Year (2020): 1. The Statement of Financial Position, 2020 showed: Assets: Current Assets Cash 1,110,000 Accounts receivable, net 240,000 Merchandise inventory 50,000 Total current assets 1,400,000 Property and equipment, net 600,000 Total Assets 2,000,000 Liabilities and Shareholders' Equity Current liabilities Accounts payable 60,000 Income tax payable 30,000 Loans payable, current portion 500,000 (due 2021) Total current liabilities 590,000 Non-current liabilities Loans payable, non-current portion 500,000 (due 2025) Total Liabilities 1,090,000 Shareholders' equity Share capital, par P100 540,000 Share premium 20,000 Retained earnings 350,000 Total shareholders' equity 910,000 Total Liabilities and Shareholders' Equity 2,000.000