mber May 725,000 00's January 300,000 February March 400,000 550,000 June July 475,000 300,000 000ar bloe aboos Collection estimates obtained from the credit and collection departments aré as follows 20% of peso sales will be collected in the month of sale; 60% will be collected the mon following the sale; and 20% will be collected two months following the sale. Wages and materials costs related to production, and hence to sales. The production department has estimated theses costs as follows: ni December January February March P175,000 175,000 250,000 275,000 aApril lMay June on re st snim P425,000 175,000 75,000 slai l Note, however, that payments for wages and materials are typically paid during the month following the one in which the costs are incurred. Administrative salaries are projected at P25,000 a month; lease payments amount P20,000 a month; depreciation expenses are P30,000 per month; and miscellaneous overhead expenses total P10,000 a month. Quarterly tax payments of P125,000 must be made in Mardh and June; and P250,000 will be needed in April to purchase a new fabric cutting machine. The company expects the firm to have P50,000 on hand at the beginning of January, and she wants to start each month with that amount on hand. As Jill's assistant, you have bee asked to assist her by completing the following tasks. Instruction 1. 2. Construct the remainder of the cash budget for the months of January through June. 3. What is Swimwear's maximum loan requirement? 4. What is the firm's maximum surplus balance?
mber May 725,000 00's January 300,000 February March 400,000 550,000 June July 475,000 300,000 000ar bloe aboos Collection estimates obtained from the credit and collection departments aré as follows 20% of peso sales will be collected in the month of sale; 60% will be collected the mon following the sale; and 20% will be collected two months following the sale. Wages and materials costs related to production, and hence to sales. The production department has estimated theses costs as follows: ni December January February March P175,000 175,000 250,000 275,000 aApril lMay June on re st snim P425,000 175,000 75,000 slai l Note, however, that payments for wages and materials are typically paid during the month following the one in which the costs are incurred. Administrative salaries are projected at P25,000 a month; lease payments amount P20,000 a month; depreciation expenses are P30,000 per month; and miscellaneous overhead expenses total P10,000 a month. Quarterly tax payments of P125,000 must be made in Mardh and June; and P250,000 will be needed in April to purchase a new fabric cutting machine. The company expects the firm to have P50,000 on hand at the beginning of January, and she wants to start each month with that amount on hand. As Jill's assistant, you have bee asked to assist her by completing the following tasks. Instruction 1. 2. Construct the remainder of the cash budget for the months of January through June. 3. What is Swimwear's maximum loan requirement? 4. What is the firm's maximum surplus balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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