1. December cash disbursements for merchandise purchases would be?2. the excess (deficiency) of cash available over disbursements for December would be? Omega DB Corporation is a small wholesaler of gourmet food products. Data regarding thestore's operations follow:Sales are budgeted at P340,000 for November, P320,000 for December, andP310,000 for January.Collections are expected to be 80% in the month of sale, 16% in the monthfollowing the sale, and 4% uncollectible.The cost of goods sold is 75% of sales.The company purchases 60% of its merchandise in the month prior to themonth of sale and 40% in the month of sale. Payment for merchandise ismade in the month following the purchase.Other monthly expenses to be paid in cash are P24,000.Monthly depreciation is P15,000.Ignore taxes. Statement of Financial PositionOctober 31Assets:CashAccounts receivable (net of allowance for uncollectible accounts)Inventory....Property, plant and equipment (net of P572,000 accumulateddepreciation).Total assets .P 20,00070,000153,0001,094,000P1,337,000Liabilities and Stockholders' Equity:Accounts payable.Common stock...Retained earningsTotal liabilities and stockholders' equityP 254,000820,000263,000P1,337,000

Cash disbursements for merchandise purchases refer to cash payments for settling the obligation…

Answered: 1. December cash disbursements for…

1. December cash disbursements for merchandise purchases would be? 2. the excess (deficiency) of cash available over disbursements for December would be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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