For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on 1. а. С. original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. е.
For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on 1. а. С. original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. е.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. For cash budget, assume the following:
The company desires to maintain P15,000 minimum cash balance
b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid
every 2nd quarter of the following year
At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment.
d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000
increments. 3% interest rate is credited to the company's bank account at the quarter's end based on
original cost of investment
In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest
rate is automatically debited to the company's bank account at the end of every quarter.
a.
C.
е.
Transcribed Image Text:Shrek & Fiona Company
Statement of Financial Position
As of December 31, 2020
Current Assets
Current Liabilities
Cash
18,000
Accounts Payable (N2)
240,000
Taxes Payable
Dividends Payable
Accounts Receivable (N1)
1,192,000
13,200
Less: Uncollectible accounts
(22,400) 1,169,600
500,000
Inventories
Total Current Liabilities
753,200
Raw Materials (12,000 pounds)
30,000
Finished Goods (4,000 units)
140,000
170,000
Total Current Assets
1,357,600
Stockholder's Equity
Common Stock (100,000 shares)
500,000
Non-current Assets
Retained Earnings
360,400
Property, plant, and equipment
320,000
Total Stockholder's Equity
860,400
Less: Accumulated depreciation
(64,000)
256,000
Total Assets
1,613,600
Total Liabilities and SHE
1,613,600
N1 2020 3rd quarter sales P2,500,000
P
200,000
2020 4th quarter sales P3,100,000
992,000
P 1,192,000
N2 2020 3rd quarter purchases P300,000
75,000
2020 4th quarter purchases P330,000
165,000
P
240,000
Cash Disbursement Schedule
For 2021
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Purchases
145,350.00
236,385.00
336,523.50
424,636.50
1,142,895.00
Direct Labor
808,000.00
888,800.00
977,680.00
1,228,320.00
3,902,800.00
Factory Overhead
Selling and Administrative Expenses
155,860.00
167,576.00
180,463.60
216,806.40
720,706.00
259,250.00
276,450.00
281,290.00
296,294.00
1,113,284.00
Таx Payments
13,200
13,200.00
Total Cash Disbursements
1,381,660.00
1,569,211.00
1,775,957.10
2,166,056.90
6,892,885.00
Collection from customers
1,716,224.00
2,561,241.60
2,893,016.32
3,142,189.95
(10,312,671.87)
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