PROBLEM B: Cash Budget

The Faithful Company, a merchandising firm, has planned the following sales for the next four months:

Total budgeted sales $q,$ March

April

P$60,000$

P$80,000$

May June

$P100,000P50,000$

Sales are made $40\%$ for cash and $60\%$ on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern:

Month of sale

First month following month of sale $q,$

Second month following month of sale. $q,$

Uncollectible $q,$

$70\%$

$15\%$

$12\%$

$3\%$

Assume the following budgeted data for June:

Inventory Purchases $q,$

Selling and administrative expenses $q,$

Depreciation $q,$

Bad debts

Equipment purchases $q,$

Cash balance, beginning of June $q,$

P$52,000$

$P10,000$

P$8,000$

P$5,000$

P$15,000$

P$16,000$

Required:

a$.$ Compute the budgeted cash receipts for June. $(5$ points$)$

b$.$ Prepare a cash budget in good form for June. $(10$ points$)$