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PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows: PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows: 1. 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.

PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows:

PasolCompanyhasjustprepareditsmasterbudgetfortheyear2015.Someoftheinformationusedinthepreparationofsuch budgetisasfollows:

1. 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.

4Accountspayablearisingfrommerchandisepurchasesispaidforinthemonthfollowingthepurchase

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
  1. ThebudgetedcashcollectionsinMarchforthesales madeinMarchis
  2. ThebudgetedcashreceiptsforthemonthofApril is
  3. ThebudgetedpurchasesofmerchandiseforFebruaryis

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