Problem 11 (Cash Receipt): Experience has shown that 20% percent of Gapan Company sales are for cash. Monthly sales are budgeted as follows: P280,000 for October, P240,000 for November, and P320,000 for December. The rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is expected to be uncollectible. Required: 1. Prepare a schedule of expected cash collections for the month of December. 2. Determine the balance of the accounts receivable at December 31. Problem 12 (Cash Receipt): The following credit sales are budgeted by J Company: January P124,000 April P140,000 February 120,000 May 142,000 March 135,000 June 180,000 The company's experience indicates that 50% of receivables are collected in the month of sale, 30% in the month following the sale, and 20% in the second month following the sale. Required: 1. How much is the budgeted cash collection during the month of March? What will be the total cash collection during the second quarter? If 20% of the total sales are cash sales, assuming the same collection pattern, how much is the budgeted cash receipts during the month of April? Problem 13 (Cash Disbursement): M Company budgeted direct materials purchases of P150,000 in April and P240,000 in May. It is the company's practice to pay for 70% of its purchases in the month of purchase and the remaining 30% in the following month. Other costs are all paid during the month incurred. During May, the following items were budgeted: Salaries and Wages expense P75.000 Purchase of office equipment 36,000 Selling and administrative expenses 24,000 Depreciation expense 18,000 Required: What amount should be budgeted for cash disbursements for May? Problem 14 (Cash Disbursement): Panay Corporation has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, $5% of its payments are made in the month of purchase 4 | Module 2: Budgeting and Forecastingand 15% are made the following month. The direct materials budget provides for purchases of P129,582 in November, P294,872 in December, P239,582 in January, and P234,837 in February. Required: 1. What is the budgeted cash disbursement for the month of December, January, and February? 2. What is the balance in accounts payable for January 31, and February 28? Problem 15 (Minimum Cash Requirement): Wales Corporation budgets its cash two months at a time. Budgeted cash disbursements for March and April, respectively, follow: March April For Inventory Purchases P 90.000 P 82,000 For selling and administrative (includes 75.000 70.000 P5,000 depreciation each month) For Equipment Purchase 15.000 6.000 For Dividend Payments 5,000 -0- Budgeted cash collections from customers are P150,000 and P185,000 for March and April, respectively. The company will begin March with a P10,000 cash balance on hand. There must be a minimum cash balance of P5,000 at the end of each month. If needed, the company can borrow month at 12% per year. All borrowings are at the beginning of a month, and all repayments are at the end of a month. Interest is paid only when principal is being repaid. Required: Construct Wales' Cash Budget for the month of March and April, indicating the financing and repayments that will be made each month, if there will be any