75Slabs International is in the building construction business. In 2019, it is expected that 40percent of a month's sales will be collected in cash, with the balance being collected thelowing month. Of the purchases, 50 percent are paid the following month, 30 percent are patdtwo months, and the remaining 20 percent are paid during the month of purchase. The salesrce receives P2,000 a month base pay plus a 2 percent commission. Labor expenses arepected to be P4,000 a month. Other operating expenses are expected to run about P2,000 aonth, including P500 for depreciation. The ending cash balance for 2018 was P4,500.alse lo rinon SalesdinoPurchasesbelio02018 ActualP80,000NovemberDecember om2019 BudgetedJanuaryFebruaryMarchP70,000Hino beoc 90,000inuo 80,000allon vseslse leloT70,00060,000 oeib rias50,00070,00090,00030,000ructions:1 Prepare a cash budget and determine the projected ending cash balances for the first threemonths of 2019.2 Determine the months that the company would either borrow or invest cash.

Budget refers to the statement prepared by the government, individuals, and companies based on the…

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.

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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