Kindy answer the requirements and show your solution clearly.
3. NABUNTAGAN COMPANY has budgeted operations for each quarter of 2019. Budget data are given as follows: 2020 1st Quarter 400,000 280,000 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales 350,000 400,000 450,000 440,000 production 240,000 250,000 280,000 250,000 cost Operating 80,000 85,000 90,000 95,000 expenses Finished 55,000 70,000 65,000 75,000 Goods Inventory 90,000 60,000 . . Included in the production cost each quarter is P55,000 in depreciation; and depreciation of P15,000 is included in each quarter in operating expenses. All production costs and operating expenses, with the exception of depreciation on sales are to be paid during the quarter. Collection on sales are planned at 60% during the quarter of sales, 398 during the next quarter following the sale and the remaining amount is said to be doubtful. The balance of the collections on net sales on 2018 has been estimated at 150,000 to be included in the total receipts for the first quarter of 2109. Materials are purchased as needed in production and are not held in inventory. Income tax is estimated at 30% of income before tax and is apid during the subsequent quarters. Dividends of P50,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be declared if the profits for the year are less than 150,000. A summary of the SFP as December 31, 2018 is given as follows: . Assets Cash 95,000 Liabilities & Equities Est. Income tax 15,000 payable Capital stock 800,000 150,000 Accounts receivable Inventory 55,000 Retained Earnings 210,000 PPE, net Total 725,000 1,025,000 Total 1,025,000 Requirements: 40 points a. Prepare an estimated income statement of the 1st quarter and the fourth quarter of 2019. b. Prepare the SFP of the 2 quarter and 4th quarter of 2019. 3. NABUNTAGAN COMPANY has budgeted operations for each quarter of 2019. Budget data are given as follows: 2020 1st Quarter 400,000 280,000 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales 350,000 400,000 450,000 440,000 production 240,000 250,000 280,000 250,000 cost Operating 80,000 85,000 90,000 95,000 expenses Finished 55,000 70,000 65,000 75,000 Goods Inventory 90,000 60,000 . . Included in the production cost each quarter is P55,000 in depreciation; and depreciation of P15,000 is included in each quarter in operating expenses. All production costs and operating expenses, with the exception of depreciation on sales are to be paid during the quarter. Collection on sales are planned at 60% during the quarter of sales, 398 during the next quarter following the sale and the remaining amount is said to be doubtful. The balance of the collections on net sales on 2018 has been estimated at 150,000 to be included in the total receipts for the first quarter of 2109. Materials are purchased as needed in production and are not held in inventory. Income tax is estimated at 30% of income before tax and is apid during the subsequent quarters. Dividends of P50,000 are to be paid in June and again in December if covered by sufficient profits. No dividends will be declared if the profits for the year are less than 150,000. A summary of the SFP as December 31, 2018 is given as follows: . Assets Cash 95,000 Liabilities & Equities Est. Income tax 15,000 payable Capital stock 800,000 150,000 Accounts receivable Inventory 55,000 Retained Earnings 210,000 PPE, net Total 725,000 1,025,000 Total 1,025,000 Requirements: 40 points a. Prepare an estimated income statement of the 1st quarter and the fourth quarter of 2019. b. Prepare the SFP of the 2 quarter and 4th quarter of 2019
