Additional information: (a) All sales are on credit and are collected 20% in the month of sale and 80% in the month after sale. (b) Budgeted sales for the first five months of 2015 are: January P 100,000 February P 120,000 April May P 132,000 P 130,000 March P 140,000 (c) Inventory is maintained at budgeted sales requirements for the following two months. (d) Purchases are all on credit and are paid 80% in the month of purchase and 20% in the month after purchase. (e) Variable operating costs are 20% of sales and are paid in the month incurred. (f) Fixed operating costs are P 12,000 per month, including P 1,000 of depreciation. Cash fixed operating costs are paid in the month incurred. (g) Binangonan's income tax rate is 25%, with taxes being paid in the month after they are accrued. (h) Cost of goods sold is expected to be 60% of sales. Required: Construct Binangonan's budgeted Income Statement, Cash Budget, and Budgeted Balance Sheet for the first quarter of 2015.
Additional information: (a) All sales are on credit and are collected 20% in the month of sale and 80% in the month after sale. (b) Budgeted sales for the first five months of 2015 are: January P 100,000 February P 120,000 April May P 132,000 P 130,000 March P 140,000 (c) Inventory is maintained at budgeted sales requirements for the following two months. (d) Purchases are all on credit and are paid 80% in the month of purchase and 20% in the month after purchase. (e) Variable operating costs are 20% of sales and are paid in the month incurred. (f) Fixed operating costs are P 12,000 per month, including P 1,000 of depreciation. Cash fixed operating costs are paid in the month incurred. (g) Binangonan's income tax rate is 25%, with taxes being paid in the month after they are accrued. (h) Cost of goods sold is expected to be 60% of sales. Required: Construct Binangonan's budgeted Income Statement, Cash Budget, and Budgeted Balance Sheet for the first quarter of 2015.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 15P: Included in the December 31, 2018, Jacobi Company balance sheet was the following shareholders...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Additional information:
(a) All sales are on credit and are collected 20% in the month of sale and
80% in the month after sale.
(b) Budgeted sales for the first five months of 2015 are:
January
April
May
P 100,000
P 132,000 P 130,000
February
P 120,000
March
P 140,000
(c) Inventory is maintained at budgeted sales requirements for the
following two months.
(d) Purchases are all on credit and are paid 80% in the month of purchase
and 20% in the month after purchase.
(e) Variable operating costs are 20% of sales and are paid in the month
incurred.
(f) Fixed operating costs are P 12,000 per month, including P 1,000 of
depreciation. Cash fixed operating costs are paid in the month
incurred.
(g) Binangonan's income tax rate is 25%, with taxes being paid in the
month after they are accrued.
(h) Cost of goods sold is expected to be 60% of sales.
Required: Construct Binangonan's budgeted Income Statement, Cash Budget,
and Budgeted Balance Sheet for the first quarter of 2015.
cs Scanned with CamScanner
Transcribed Image Text:Problem 19 (Comprehensive): Following are Binangonan Company's balance
sheet at December 31, 2014, and information regarding Binangonan's policies
and past experiences.
Binangonan Company
Statement of Financial Position
December 31, 2014
Assets
Cash
Accounts receivable, customers
Inventory
Buildings and equipment, net of depreciation -
Total assets
Liabilities and Stockholders' Equity
Accounts payable, suppliers
Income tax payable
Capital stock, no par
Retained earnings
Total liabilities and stockholders' equity
cs Scanned with CamScanner
P 66,000
62,000
118,000
204,000
P450,000
P 18,000
16,000
360,000
56,000
P450,000
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