Webster Company has the following sales budget.

January P200,000

February P240,000

March P300,000

April P360,000

Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps

inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase

and 20% in the month after purchase. Inventory at the beginning of January is P190,000. Webster has monthly fixed costs of

P30,000 including P6,000 depreciations. Fixed costs requiring cash are paid as incurred.

Required:

a. Compute budgeted cash receipts in March.

b. Compute budgeted accounts receivable at the end of March.

c. Compute budgeted inventory at the end of February.

d. Compute budgeted purchases in February.

e. March purchases are P290,000. Compute budgeted cash payments in March to suppliers of goods.

f. Compute budgeted accounts payable for goods at the end of February.

g. Cash at the end of February is P45,000. Cash disbursements are not required for anything other than payments to

suppliers and fixed costs. Compute the budgeted cash balance at the end of March.

Following are Blaisdel Company's balance sheet at December 31, 20X0, and information regarding Blaisdel's policies

and past experiences.

Blaisdel Company

Balance Sheet at December 31,20X0

Assets Equities

Cash P 33,000 Accounts payable P 9,000

Receivables 31,000 Income taxes payable 8,000

Inventory 59,000 Common stocks 180,000

Fixed assets, net 102,000 Retained earnings 28,000

Total P225,000 Total P225,000

Additional information:

A. All sales are on credit and are collected 30% in the month of sale and 70% in the month after sale.

B. Budgeted sales for the first five months of 20X1 are P50,000, P60,000, P70,000, P66,000, and P65,000,

respectively.

C. Inventory in maintained at budgeted sales requirements for the following two months.

D. Purchases are all on credit and are paid 80% in the month of purchase and 20% in the month after purchase.

E. Other variable cost are 20% of sales and are paid in the month incurred.

F. Fixed costs are P6,000 per month, excluding P1,000 of depreciation. Cash fixed costs are paid in the month

incurred.

G. Blaisdel's income tax rate is 25%, with taxes being paid in the month after they are accrued.

H. Cost of goods sold is expected to be 60% of sales.

Required:

1. Projected Income Statement for January to May 30, 20x1.

2. Projected schedule of inventory levels from January to March 20x1 showing the beginning

inventory, purchases, and ending inventory for eachh month.

3. Projected schedule of receivables from January to May 20x1.