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АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000

АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000

FINANCIAL ACCOUNTING
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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АВС СОМРANY Month Sales budget July August 800,000 750,000 September 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital Cash 100,000 Accounts Payable 200,000 Accounts Receivable 280,000 Inventory 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset А. Сарital Total PHP 0 PHP 0
Transcribed Image Text:АВС СОМРANY Month Sales budget July August 800,000 750,000 September 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital Cash 100,000 Accounts Payable 200,000 Accounts Receivable 280,000 Inventory 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset А. Сарital Total PHP 0 PHP 0
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