A 2016 cash budget is being prepared for the purchase of TOBI, a merchandise item. Budgeted data are: Cost of goods sold for 2016 P300,000 Accounts payable 1/1/16 P20,000 Inventory-1/1/16 P30,000 12/31/16 P42,000. Purchases will be made in twelve equal monthly amounts and paid for in the following month. Required: How much is the 2016 budgeted cash payment for purchases of TOBI?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PROBLEM 7-H CASH DISBURSEMENTS BUDGET
A 2016 cash budget is being prepared for the purchase of TOBI, a merchandise item.
Budgeted data are: Cost of goods sold for 2016 P300,000 Accounts payable 1/1/16 P20,000
Inventory-1/1/16 P30,000 12/31/16 P42,000. Purchases will be made in twelve equal monthly
amounts and paid for in the following month.
Required:
How much is the 2016 budgeted cash payment for purchases of TOBI?
Transcribed Image Text:PROBLEM 7-H CASH DISBURSEMENTS BUDGET A 2016 cash budget is being prepared for the purchase of TOBI, a merchandise item. Budgeted data are: Cost of goods sold for 2016 P300,000 Accounts payable 1/1/16 P20,000 Inventory-1/1/16 P30,000 12/31/16 P42,000. Purchases will be made in twelve equal monthly amounts and paid for in the following month. Required: How much is the 2016 budgeted cash payment for purchases of TOBI?
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