18. Sta. Elena Merchandising company plans to sell in December 15, 000 units of its product at a unit price of P20. The estimated gross profit is 25% of sales. The inventory will be increased in December in anticipation of higher sales volume for Christmas. The increase will be about P100,000. Amounts payable to trade creditors will also increase by P25,000. Estimate of payment to be made during the month of December for merchandise is a. P300,000 b. P250,000 c. P150,000 d. P100,000 21. Harrison Company has budgeted its operations for August. No change in the inventory level during the month is planned. Selected data based on estimated amounts are as follows: Net loss $(120,000) Increase in accounts payable 48,000 Depreciation expense 42,000 Decrease in gross of trade account receivables 72,000 Purchase of equipment on 90-day credit terms 18,000 Provision for estimated warranty liability 12,000 What is the expected change in the cash position during August? A. $18,000 decrease. B. $30,000 decrease. c. $36,000 increase. D. $54,000 increase. 23. In preparing its budget for July, 2021, Joy Company has the following accounts receivable information available: Accounts receivable at June 30, 2021 P350,000 Estimated credit sales for July P400,000 Estimated collections in July for credit sales in July and prior months P320,000 Estimated write-offs in July for uncollectible credit sales P 16,000 Estimated provision for doubtful accounts for credit sales in July P 12,000 What is the projected balance of accounts receivable at July 31, 2021? a. P402,000. b. P430,000. c. P414,000. d. P426,000. Questions 27 through 30 are based on the following information. For purposes of preparing the cash projections and other budget estimates for the third quarter of 1988, the following information is presented to you by the management of Virgo Corporation: Second Quarter Sales Data: Pesos Units April P530,000 10,600 May 550,000 11,000 June 570,000 11,400 Projected sales for the next four Pesos Units months July 540,000 10,800 August 550,000 11,000 September 560,000 11, 200 October 580,000 11,600 All sales are on charge basis and billed at the end of the month. A5 A 58 discount is given on collections within the 15 days from billing date. Sales collections are generally made as follows: 70% within the month following the billing date with 40% of this being collected within the discount period. 27% on the second month following the billing date. 3% considered uncollectible Merchandise purchases are generally paid as follows: 50% within the month they are incurred. 50% after the month they are incurred Ending inventory in units (cost per unit is P40) units (cost per unit is P40) is 30% higher than the following month's sales in units. Operating expenses are on cash basis and are estimated to be 15% of the current month's sales including monthly depreciation of P10,000. As of June 30, 1988, Accounts Receivable balance was P630,000 and Merchandise Inventory was P565,000. 27. The budgeted cash collections for the month of July would be a. P547,500 b. P539,520 c. P556, 020 d. P391,020 28. The budgeted cash payments of the month of September would be a. P518,000 b. P533, 600 c. P468,800 d. P459, 600 29. The projected net income for September would be a. P122, 200 b. P112,000 C. P28,000 d. P38,000 30. The balance of accounts receivable at the end of July, ass ng that uncollectible accounts are written off for July would be (VD) a. P622,500 b. P645, 660 C.P613,980 d. P630, 480