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With solution pls thank you!! A to E From A to F with solutions pls thank you! On top of these variable cash operating expenses,
With solution pls thank you!! A to E
From A to F with solutions pls thank you!
On top of these variable cash operating expenses, fixed operating expens es paid in cash are about P100 000 per quarter. Quarterly depreciation d. e. charged to operations is P50 000 Interest expense paid every quarter is P100 000. Income tax rate is 30%. The income taxes to be paid every quarter will be as follows: P230 000 First quarter Second quarter P60 000 Third quarter P127 500 Fourth quarter P195 000 Expected cash balance at the end of 2015 is about P400 000. For 2016, target cash balance is raised to P500 000 because of expected increase in sales. Prepare the 2016 cash budget and find out if the company can pay the P4 million principal at the end of 2016. f. Diontonac Du be paid in 7. It was November 2015 and the president of BG Corporation wanted to find out if the company had enough cash to pay the principal balance of the company's loan worth P4 million by the end of 2016. He asked the chief accountant to prepare cash budget for 2016. The following assumptions which will be used for the preparation of the cash budget for 2016 are as follows: Projected quarterly sales for 2016 are as follows: First quarter P3 million Second quarter P4.5 million Third quarter P6 million Fourth quarter P8 million Expected fourth quarter sales in 2015 was P5 million Sales are collected 90% in the quarter the sales are made. The remaining 10% is collected the following quarter. b. Cost of sales is 70% of sales. Merchandise inventories are purchased in the quarter these are sold. All merchandise purchased in the quarter are paid in the same quarter. Variable operating expenses which are paid in cash are 15% of salesStep by Step Solution
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