December cash disbursements for merchandise purchases would be: Alpha CD Corporation is a small wholesaler of gourmet food products. Data regarding thestore's operations follow:Sales are budgeted at P340,000 for November, P320,000 for December, andP310,000 for January.Collections are expected to be 80% in the month of sale, 16% in the monthfollowing the sale, and 4% uncollectible.The cost of goods sold is 75% of sales.The company purchases 60% of its merchandise in the month prior to themonth of sale and 40% in the month of sale. Payment for merchandise ismade in the month following the purchase.Other monthly expenses to be paid in cash are P24,000.Monthly depreciation is P15,000.Ignore taxes.Statement of Financial PositionOctober 31Assets:Cash.Accounts receivable (net of allowance for uncollectible accounts)Inventory .Property, plant and equipment (net of P572,000 accumulateddepreciation).Total assets....20,00070,000153,0001,094,000P1,337,000Liabilities and Stockholders' Equity:Accounts payableCommon stock....Retained earningsTotal liabilities and stockholders' equityP 254,000820,000263,000P1,337.000........

Cash Disbursements- Disbursements refer to payment. In business, Cash Disbursements refers to the…

Answered: December cash disbursements for…

Business

Accounting

December cash disbursements for merchandise purchases would be:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
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