Problem 2 Conchita Company has the following information: Month March April May June July Budgeted Sales P 50,000 53,000 51,000 54,500 52,500 In addition, the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales. Required: Prepare a purchases budget for April and May. P31,440 and P31,230 Problem 3 Ramon Manufacturing has a cash balance of P8,000 on August 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity. August September Receipts P 45,000 66,000 Payments P 57,000 56,000 Management desires to maintain a minimum cash balance of P8,000 at all times. If necessary, additional financing can be obtained in P1,000 multiples at a 12% interest rate. All borrowings are made at the beginning of the month; debt retirement, on the otherhand, occurs at the end of the month. Interest is paid at the time of repaying loan principal and is computed on the portion of debt repaid. Required: 1. Determine the ending cash balance in August both before and after any necessary financing or debt retirement. (P4,000) and P8,000 2. Repeat part "1" for September. P18,000 and P8,820