75 Slabs International is in the building construction business. In 2019, it is expected that 40 percent of a month's sales will be collected in cash, with the balance being collected the lowing month. Of the purchases, 50 percent are paid the following month, 30 percent are pałd two months, and the remaining 20 percent are paid during the month of purchase. The sales rce receives P2,000 a month base pay plus a 2 percent commission. Labor expenses are pected to be P4,000 a month. Other operating expenses are expected to run about P2,000 a nth, including P500 for depreciation. The ending cash balance for 2018 was P4,500. Sales Purchases lio 2018 Actual November December P80,000 90,000 P70,000 80,000 allo 2019 Budgeted January February March 70,000 90,000 70,000 60,000 b rie 50,000 30,000 ructions: 1 Prepare a cash budget and determine the projected ending cash balances for the first three months of 2019. 2 Determine the months that the company would either borrow or invest cash.
75 Slabs International is in the building construction business. In 2019, it is expected that 40 percent of a month's sales will be collected in cash, with the balance being collected the lowing month. Of the purchases, 50 percent are paid the following month, 30 percent are pałd two months, and the remaining 20 percent are paid during the month of purchase. The sales rce receives P2,000 a month base pay plus a 2 percent commission. Labor expenses are pected to be P4,000 a month. Other operating expenses are expected to run about P2,000 a nth, including P500 for depreciation. The ending cash balance for 2018 was P4,500. Sales Purchases lio 2018 Actual November December P80,000 90,000 P70,000 80,000 allo 2019 Budgeted January February March 70,000 90,000 70,000 60,000 b rie 50,000 30,000 ructions: 1 Prepare a cash budget and determine the projected ending cash balances for the first three months of 2019. 2 Determine the months that the company would either borrow or invest cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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