Petesy Corporation is preparing its Master Budget for 2019. Budget information is as follows:

Sales Production Cost Operating Expenses

2019 1^stQuarter P280,000 P192,000 P64,000

2^ndQuarter 320,000 200,000 68,000

3^rdQuarter 360,000 224,000 72,000

4^thQuarter 352,000 200,000 76,000

2020 1^stQuarter 320,000 224,000 72,000

The budgeted Finished Goods Inventories are:

2018 March 31 P 56,000

June 30 52,000

September 3060,000

December 31 48,000

The company uses the JIT system on its purchase of materials. It buys materials on cash basis.

Included in the production cost each quarter is P44, 000 in depreciation. The operating expenses include depreciation of P12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence.

Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P20,000 is to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P120,000.

Income Tax is equal to 32 of the quarter's income before tax and is paid in the following quarter.

The Statement of Financial Position as of December 31, 2018 is as follows:

Petesy Corporation

Statement of Financial Position

December 31, 2018

Assets Equities

Cash P 76,000 Income tax payable P 12,000

Accounts Receivable 120,000

Inventory 44,000 Share Capital 640,000

Plant and Equipment 580,000 Retained Earnings 168,000

Total 820,000 Total 820,000

5.What is the budgeted cash balance on December 31, 2019?

6.What is the expected balance of accounts receivable as of December 31, 2019?

7.What is the budgeted balance of raw materials inventory as of December 31, 2019?

8.What is the expected balance of Income tax payable as of December 31, 2019?