The following information pertains to Happy Tee Co.:

Month Sales Purchases

July P40,000 P20,000

August 30,000 15,000

September 20,000 10,000

October 50,000 25,000

November 60,000 30,000

December 70,000 35,000

Cash is collected form customers in the following manner:

Month of sale 20%

Month following the sale 50%

Two months following sale 28%

Amount uncollectible 2%

30% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. A 2% discount is allowed on cash paid out at the time of purchase.

Labor costs are 20% of sales. Other operating costs are P5,000 per month (including P2,000 of depreciation). Both of these are paid in the month incurred.

The cash balance on October 1 is P4,300. A minimum cash balance of P4,000 is required at the end of the month. Money can be borrowed in multiples of P1,000.

Finally, the firm will issue P6,000 of common stock and pay out P10,000 on dividends in October.

projected cash flow statement in good form for the month of October. Use the format below:

Beginning cash balance

Add: Cash collections *

Total cash available

Less: Total Cash disbursements & minimum cash requirement

Total Disbursements

Add: Minimum cash balance required

Total Cash needed

Cash excess (deficit)

Financing

Borrowing

Repayments

Total cash form financing

Ending cash balance

*Schedule of cash collections

Cash sales

Add: Collections form prior month:

Total Collections :