19 - 27 DY Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at P290,000 for November, P310,000 for December, and P210,000 for January. Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible, The cost of goods sold is 80% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are P21,100. Monthly depreciation is P21,000.lgnore taxes. Statement of Financial Position October 31 Assets: P 25,000 77,000 Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of P624,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity: Accounts payable 162,400 1.026.000 P1,290,400 P 239,000 Common stock Retained earnings Total liabilities and stockholders' equity 740,000 311.400 P1.290.400 19. Expected cash collections in December are: A) P310,000 C) P297,200 B) P95,700 D) P201,500 20. The cost of December merchandise purchases would be: A) P248,000 B) P232,000 C) P117,600 D) P192,000 21.December cash disbursements for merchandise purchases would be: A) P192,000 B) P243,200 C) P117,600 D) P248,000 22. The excess (deficiency) of cash available over disbursements for December would be: B) P19,200 A) P46,600 C) P13,700 D) P32,900 23. The net income for December would be: A) P13,700 B) P32,900 C) P40,900 D) P19,900 24. The cash balance at the end of December would be: B) P25,000 C) P57,900 A) P63,300 D) P38,300 24. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: B) P198.000 A) P102,300 C) P83,200 D) P108,500 26. Accounts payable at the end of December would be: A) P192,000 C) P117,600 B) P248,000 D) P74,400 27. Retained earnings at the end of December would be: A) P325,100 C) P335,200 B) P311,400 D) P347,200