The January 31, 2019 Statement of Financial Position of Shelpat

Corporation as follows:

Cash P 8,000

Accounts Receivable (net of allowance

for uncollectible accounts of P2,000) 38,000

Inventory 16,000

PPE, net of allowance for Accumulated

Depreciation 40,000

P102,000

Accounts Payable P82,000

Ordinary Shares 50,000

Retained Earnings (deficit) (30,500)

102,000

Additional information:

Sales are budgeted as follows:

o February P110,000

o March 120,000

Collections are expected to be 60% in the month of sale, 38% the next month,

and 2% uncollectible.

The gross margin is 25% of sales. Purchases each month are 75% of the next

month's projected sales. The purchases are paid in full the following month.

Other expenses for each month, paid in cash, are expected to be P16,500.

Depreciation each month is P5,000.

Required:

1. What is the budgeted cash collections for February 2019?

2. What is the pro forma income (loss) before income taxes for February 2019?

3. What is the projected balance in accounts payable on February 2019?