Question
PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows: Budgetedsales: January P480,000 February 520,000 March 560,000 April 500,000 May 576,000 June 640,000 2.Twentypercentoftotalsalesiscashsales.Thecollectionspatternforthesalesoncreditisasfollows: 30%inthemonthof sale 40%inthemonthafterthemonthofsale 25%inthesecondmonthafterthemonthofsale 3.PasolCompany'sgrossmarginrateis60%ofsales. 4.Accountspayablearisingfrommerchandisepurchasesispaidforinthemonthfollowingthepurchase 5.Thecompanydesiresaninventoryattheendofeachmonthequalto30%ofthenextmonth'ssalesin units. 6.Thevariableoperatingexpenses(otherthancostofgoodssold)are10%ofsalesand
PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows:
- Budgetedsales: January P480,000
February 520,000
March 560,000
April 500,000
May 576,000
June 640,000
2.Twentypercentoftotalsalesiscashsales.Thecollectionspatternforthesalesoncreditisasfollows:
30%inthemonthof sale
40%inthemonthafterthemonthofsale
25%inthesecondmonthafterthemonthofsale
3.PasolCompany'sgrossmarginrateis60%ofsales.
4.Accountspayablearisingfrommerchandisepurchasesispaidforinthemonthfollowingthepurchase
5.Thecompanydesiresaninventoryattheendofeachmonthequalto30%ofthenextmonth'ssalesin units.
6.Thevariableoperatingexpenses(otherthancostofgoodssold)are10%ofsalesand arepaidforinthemonthfollowing thesale.
7.Theannualfixedoperatingexpensesare asfollows:
Depreciation | P336,000 |
Advertising | 576,000 |
Insurance | 144,000 |
Salaries | 864,000 |
Propertytaxes | 192,000 |
8.Allofthefixedoperatingexpensesareincurreduniformlythroughouttheyear.Cashfixedoperatingexpensesarepaid inthemonth of incurrence,except for:
- Insurance-paidquarterlyinJanuary, AprilandJuly
- Propertytaxes-paid twiceayearinAprilandOctober
- How much is the budgetedcashdisbursementsforoperatingexpenses(otherthancostofgoodssold)duringthemonthofApril?
- How much is thebudgetedcashdisbursementstobemadeinApril formerchandisepurchases ?
- AssumethattheexpectedcashbalanceatthebeginningofAprilisP51,600.Howmuchisthebudgetedcashbalanceas of April 30?
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Modern Management Concepts And Skills
Authors: Samuel Certo, S Certo
15th global Edition
978-1292265193, 1292265191
