7.10 20hong to fo The following information pertains to Bestwood, Inc. Months by Sales Purchasesol alubarbe bud st July P60,000 P20,000 August 20,000 10,000 September 40,000 24,000 by October 50,000 28,000 base on bood November wolio 40,000 December 36,000 22,000 inbox best along 16,000 viul Thirty percent (30%) of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. A 3% discount is allowed on cash paid out at the time of purchase. Cash is collected from customers in the following manner:00 Month of sale (2% cash discount) Month following sale in 30% gate 50% t of abnow gregmos Two months following sale Amount uncollectible 29 test og 2% 17% noubuting tomonid Chapter 7 Financial Planning 163 The company incurs labor costs equal to 10% of sales, and other operating costs of P20,000 per month (including P8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on October 1 is P12,000. A minimum cash balance of P6,000 is required at the end of the month. Money can be borrowed in multiples of P1,000. Finally, Bestwood will issue P4,000 of common stock and pay out P10,000 in dividends in October. Instructions: Prepare a projected statement of cash flows in good form for October.) solama) brubni otus moni qul
7.10 20hong to fo The following information pertains to Bestwood, Inc. Months by Sales Purchasesol alubarbe bud st July P60,000 P20,000 August 20,000 10,000 September 40,000 24,000 by October 50,000 28,000 base on bood November wolio 40,000 December 36,000 22,000 inbox best along 16,000 viul Thirty percent (30%) of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. A 3% discount is allowed on cash paid out at the time of purchase. Cash is collected from customers in the following manner:00 Month of sale (2% cash discount) Month following sale in 30% gate 50% t of abnow gregmos Two months following sale Amount uncollectible 29 test og 2% 17% noubuting tomonid Chapter 7 Financial Planning 163 The company incurs labor costs equal to 10% of sales, and other operating costs of P20,000 per month (including P8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on October 1 is P12,000. A minimum cash balance of P6,000 is required at the end of the month. Money can be borrowed in multiples of P1,000. Finally, Bestwood will issue P4,000 of common stock and pay out P10,000 in dividends in October. Instructions: Prepare a projected statement of cash flows in good form for October.) solama) brubni otus moni qul
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer and provide explanations.
Transcribed Image Text:7.10
20hong to fo
The following information pertains to Bestwood, Inc.
Months by Sales
Purchasesol alubarbe bud st
July
P60,000
P20,000
August
20,000
10,000
September
40,000
24,000
by October
50,000
28,000 base on bood
November wolio
40,000
December
36,000
22,000 inbox best along
16,000
viul
Thirty percent (30%) of purchases are paid for in cash in the month of purchase, and the balance
is paid the following month. A 3% discount is allowed on cash paid out at the time of purchase. Cash
is collected from customers in the following manner:00
Month of sale (2% cash discount)
Month following sale in
30%
gate 50%
t of abnow gregmos
Two months following sale
Amount uncollectible 29
test
og 2%
17%
noubuting tomonid
Chapter 7 Financial Planning
163
The company incurs labor costs equal to 10% of sales, and other operating costs of P20,000 per
month (including P8,000 of depreciation). Both of these are paid in the month incurred. The cash
balance on October 1 is P12,000. A minimum cash balance of P6,000 is required at the end of the
month. Money can be borrowed in multiples of P1,000. Finally, Bestwood will issue P4,000 of common
stock and pay out P10,000 in dividends in October.
Instructions:
Prepare a projected statement of cash flows in good form for October.) solama)
brubni otus moni qul
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