1. ABM Company forecasts sales in units for January to May as follows:January 2,500, February 2,700, March 3,500, April 3,700 and May 3,5002. ABM Company would like to maintain 100 units in its ending inventory at the end of each month.3. Beginning inventory at the start of January is 50 units.4. How many units should ABM Company produce in order to fulfill the expected sales of the company?MONTHFEBMARCHAPRILMAYTOTALJANProjected SalesTarget level of endinginventoriesTotalLess: beginning inventoriesRequired production5. assume selling price is PHP200/unit.6. Sales for each month are expected to be collected as follows:• Month of sales : 20% A month after sales: 50% - 2 months after sales: 30%Note · On January Abm Company collected from previous month sales amounted to P100,000MONTHFEB MARCH APRILJANMAYTOTALUnitsSales in PesosCollection from current months salesCollection from previous months salesCollection from two months priorsalesTotal Collections from Sales7. Cost of sales is 50% of sales8. Operating expenses is 7% of sales9. Rent payments: Rent of PHP5,000 will be paid each month.10. Fixed salaries for the year are PHP96,000, or PHP8,000 per month.11.Taxes of PHP25,000 must be paid in April.MONTHFEB MARCH APRILJANMAYТОТALCost of SalesCash Operating ExpenseRent ExpensesSalaries ExpensesTaxes ExpenseCash Disbursement12. Prepare Cash budget at the back, the beginning cash balance on January is P30,000 and their expected cash balanceraised to P 100,000 per month.13 id fren ihe Cashi bidgat kalorniation evaliate if A9M COMPANY need to borrow money from short termfinancıng or need to invest their cash to short term investment.

Budgeted production refers to a form of budget which shows the number of units of a specific product…

3. Beginning 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH APRIL MAY TOTAL JAN FEB MARCH Projected Sales Target level of ending Inventories Total Less: beginning inventories Required production

3. Beginning 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH APRIL MAY TOTAL JAN FEB MARCH Projected Sales Target level of ending Inventories Total Less: beginning inventories Required production

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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