SHOW SOLUTION

Use the following information for the next four (4) questions: Anne Company provided the following data: December 31, 2024 December 31, 2025 Trade accounts receivable, net of allowance 840,000 780,000 Inventory 1,500,000 1,400,000 Accounts payable 950,000 980,000 Total sales were P12,000,000 for 2025 and P11,000,000 for 2024. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2025. Variable expenses for 2025 amounted to P1,200,000 and varied in proportion to sales. Variable expenses had been paid 50% in the year incurred and 50% the following year. Fixed expenses, including P350,000 depreciation and P50,000 bad debt expense, totaled P1,000,000 each year. Eight percent of fixed expenses involving cash were paid in the year incurred and 20% the following year. Each year there was P50,000 bad debt estimated and a P50,000 writeoff. 1) What is the cash collected from customers during 2025? A. 12,010,000 B. 12,060,000 C. 11,960,000 D. 11,890,000 C. 8,500,000 D. 8,400,000 2) What is the amount of purchases for 2025? A. 9,800,000 B. 8,300,000 3) What is the cash disbursed for purchases during 2025? D. 8,200,000 A. 8,500,000 B. 8,270,000 C. 8,300,000 4) What total amount of cash was disbursed for variable and fixed expenses during 2025? A. 1,750,000 B. 1,700,000 C. 2,150,000 D. 2,100,000