10. The January 31, 2022 Statement of Financial Position of Pink Corporation follows: Cash 800,000 Accounts receivable ( net of P2,000 allowance for bad debts) 3,800,000 Inventory 1,600,000 Property, plant and equipment (net of P6,000,000 accumulated dep'n) 4,000,000 Total assets 10,200,000 Accounts payable 8,250,000 Ordinary shares 5,000,000 Retained earnings (Deficit) (3,050,000) Total Liabilities and Shareholders' equity 10,200,000 Additional information: * Sales budgeted as follows: February 11,000,000 March 12,000,000 * Collection are expected to be 60% in the month of sale, 38% next month, and 2% uncollectible. * The gross margin is 25% of sales. Purchases each month are 75% of the next month projected sales. The purchases are paid in full the following month. * other expenses for each month , paid in cash, are expected to be P1,650,000. Depreciation each m0nth is P500,000. What are the budgeted cash collections for February 2022?
10. The January 31, 2022
Cash 800,000
Inventory 1,600,000
Property, plant and equipment (net of P6,000,000 accumulated dep'n) 4,000,000
Total assets 10,200,000
Accounts payable 8,250,000
Ordinary shares 5,000,000
Total Liabilities and Shareholders' equity 10,200,000
Additional information:
* Sales budgeted as follows:
February 11,000,000
March 12,000,000
* Collection are expected to be 60% in the month of sale, 38% next month, and 2% uncollectible.
* The gross margin is 25% of sales. Purchases each month are 75% of the next month projected sales. The purchases are paid in full the following month.
* other expenses for each month , paid in cash, are expected to be P1,650,000.
What are the budgeted cash collections for February 2022?
Step by step
Solved in 2 steps
