1. Happy Inc. DSO is 50 days (on a 365-day basis), accounts receivable are P5B, and its balance sheet shows inventory of P6.25B million. What is the inventory turnover ratio?
2. Geneve Corps budgeted monthly sales are P250,000 and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following sale and do not receive discount. The firm has no bad debts. Purchases for next month's sale are constant at 50% of projected sales for the next month. "other payments" which include wages, rent and taxes are 25% of sales for the current month. Construct a cash budget for typical month and calculate the average cash gain or loss during the month.
3. Mission Company is preparing its cash budget. It expects to have sales of P1.5M in January, P1.75M in February, and P1.75M in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?