Mang Eduard operates a buy and sell business. He sells umbrellas in his shop near the city mall. He getshis umbrellas from a local dealer. Each umbrella costs 90.00 pesos each. Expecting rainy season to come, MangEduard purchased 4 dozens of umbrellas every week. The supplier then charges 200.00 pesos per dozen forfreight. Mang Eduard can sell 12 umbrellas every day.Remember to use the factors to consider in projecting revenues and refer to tables 4, 5 and 6 as your guide.Suppose Mang Eduard purchases and sales is the same every month, fill in the necessary information in table 6 Table 6Projected Monthly Costs (Year 1)MonthJanuaryFebruaryМаrchAprilМayJuneCost ofGoods SoldExpensesTotal Cost &ExpensesMonthJulyAugust SeptemberOctoberNovemberDecemberCost ofGoods SoldExpensesTotal Cost &Expenses Table 4Table 5Projected Cost of Goods Sold (Monthly)Freight-in paidProjected VolumeProjected VolumeFreight In (1 MonthOnlyNo. of ItemsAverage No. ofMerchandise/ Cost per UnitAverage No. ofProjected Costs ofMerchandise/Sold (Daily)Items PurchasedProductsItems Sold (Monthly)Purchases (Monthly)Products(Monthly)(А)F = (D x 30 days)J = (A x F)(A)F = (D x 30 days)J = (F/12) x *P200.0090TotalTotal

The financial position of the company can be arrived from the income statement prepared by the…

Answered: Mang Eduard operates a buy and sell…

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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Mang Eduard operates a buy and sell business. He sells umbrellas in his shop near the city mall. He gets
his umbrellas from a local dealer. Each umbrella costs 90.00 pesos each. Expecting rainy season to come, Mang
Eduard purchased 4 dozens of umbrellas every week. The supplier then charges 200.00 pesos per dozen for
freight. Mang Eduard can sell 12 umbrellas every day.
Remember to use the factors to consider in projecting revenues and refer to tables 4, 5 and 6 as your guide.
Suppose Mang Eduard purchases and sales is the same every month, fill in the necessary information in table 6

Table 6
Projected Monthly Costs (Year 1)
Month
January
February
Маrch
April
Мay
June
Cost of
Goods Sold
Expenses
Total Cost &
Expenses
Month
July
August September
October
November
December
Cost of
Goods Sold
Expenses
Total Cost &
Expenses

Table 4
Table 5
Projected Cost of Goods Sold (Monthly)
Freight-in paid
Projected Volume
Projected Volume
Freight In (1 Month
Only
No. of Items
Average No. of
Merchandise/ Cost per Unit
Average No. of
Projected Costs of
Merchandise/
Sold (Daily)
Items Purchased
Products
Items Sold (Monthly)
Purchases (Monthly)
Products
(Monthly)
(А)
F = (D x 30 days)
J = (A x F)
(A)
F = (D x 30 days)
J = (F/12) x *P200.00
90
Total
Total

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