Please help me with this:Thank you Activity 4 1Activity 4: Cash BudgetAll the purchases of Finnigan Company are made on account. Seventy percent ofpurchases are paid on the month of purchase and the remaining 30% are paid the follovmonth. Finnigan Co. avails itself of the 5% discount in full provided by the suppliers in apurchases.Sixty percent of the sales of Finnigan Co. are made on account. Eighty percent ofsales on account are made on the month of sale when the customers are granted 2% disEighteen percent of the credit sales are collected the following month, but customers pabeyond the cdiscount period of 10 days from the date of sale. The remaining 2 % is consieuncollectible.The following additional data are provided as follows:Operating ExperP 40,000PeriodSalesPurchasesDecember 2019 (actual)January 2020 (estimated)February 2020 (estimated)March 2020 (estimated)P 200,000250,000330,000400,000P 150,000190,000230,00055,00060,000350,00080,000The cash balance of the business on January 1, 2020 is P100,000. The business plans to buyadditional equipment in February 2020 amounting to P110,000 and will make a 35% downpayment on the month of purchase. The balance will be paid the following month.

The budgets are prepared to estimated the cash requirements for the period.

Activity 4: Cash Budget All the purchases of Finnigan Company are made on account. Seventy percent o purchases are paid on the month of purchase and the remaining 30% are paid the follo month. Finnigan Co. avails itself of the 5% discount in full provided by the suppliers in purchases. Sixty percent of the sales of Finnigan Co. are made on account. Eighty percent o sales on account are made on the month of sale when the customers are granted 2% d Eighteen percent of the credit sales are collected the following month, but customers p beyond the discount period of 10 days from the date of sale. The remaining 2% is cons uncollectible. The following additional data are provided as follows:

Activity 4: Cash Budget All the purchases of Finnigan Company are made on account. Seventy percent o purchases are paid on the month of purchase and the remaining 30% are paid the follo month. Finnigan Co. avails itself of the 5% discount in full provided by the suppliers in purchases. Sixty percent of the sales of Finnigan Co. are made on account. Eighty percent o sales on account are made on the month of sale when the customers are granted 2% d Eighteen percent of the credit sales are collected the following month, but customers p beyond the discount period of 10 days from the date of sale. The remaining 2% is cons uncollectible. The following additional data are provided as follows:

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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