Questions 1 and 2 are based on the following information: Kadyot Lang, Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May June July (actual) (budget) (budget) Sales P42,000 P40,000 P45,000 Cost of sales 21.000 20.000 22 500 Gross margin 21,000 20,000 22,500 Operating exp 20.000 20 000 20,000 Profit P 1,000 P Q P 2.500 Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "operating expenses" are paid in the month of the sale. The amount of cash collected during the month of June should be A. P32,000 C. P40,400 B. P40,000 D. P41,000* 2. The cash disbursements during the month of June for goods purchased for resale and for operating expenses should be: A. P40,000 C. P42,500 B. P41,000 D. P43,500 3. Weaver, Inc, has budgeted direct materials purchases of P150,000 in March and P240.000 in April. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense P75,000 Purchase of office equipment 36,000 Selling and administrative exp 24.000 Depreciation expense 18,000 How much is budgeted cash disbursements for April? A. P324,000 C. P213,000 B. P348,000 D. P366,000*