On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 Cash Sales Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: - Creditors are paid one (1) month after purchases. - Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April.
On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of transactions: ACTUAL BUDGETED January February March April May P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000 32,500,000 16,100,000 15,450,000 7,600,000 Cash Sales Credit Sales Cash Purchases Credit Purchases Operating Expenses 28,400,000 12,000,000 16,850,000 6,600,000 29,500,000 15,800,000 16,250,000 7,000,000 28,500,000 32,400,000 14,800,000 34,500,000 14,700,000 17,900,000 Credit sales are to be collected as follows: a. 20% in the month of sale (5% discount is allowed for prompt settlement) b. 60% after 30 days (first month after the sale) c. 18% after 60 days (second month after the sale) d. 2% is to be written off after 90 days (third month after the sale) Additional information is provided: - Creditors are paid one (1) month after purchases. - Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the operating expenses would increase by 5% per month over the budget period. The following withdrawals are made monthly by the owner: A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May. Cash to pay for the owner's personal telephone Trading stock P 30,000 P 70,000 Depreciation is calculated at P350,0000 per month. A new vehicle costing P5,300,000 will be purchased and paid in April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Prepare the Cash Budget of ABC Traders for the period April 01 to May 31.
ABC TRADERS
Cash Budgets for the months April 1 to May 30
April
May
Cash Receipts
Total Receipts
Cash Payments
Total Payments
Net Cash Flows
Net cash flow (NCF) for month:
Cumulative NCF
Cash Surplus
Cash Balance
Surplus cash
Transcribed Image Text:On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of
transactions:
ACTUAL
BUDGETED
January
February
March
April
May
Cash Sales
P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000
32,500,000
16,100,000
15,450,000
7,600,000
Credit Sales
Cash Purchases
Credit Purchases
Operating Expenses
28,400,000
12,000,000
16,850,000
6,600,000
29,500,000
15,800,000
16,250,000
7,000,000
28,500,000
32,400,000
14,800,000
34,500,000
14,700,000
17,900,000
Credit sales are to be collected as follows:
a. 20% in the month of sale (5% discount is allowed for prompt settlement)
b. 60% after 30 days (first month after the sale)
c. 18% after 60 days (second month after the sale)
d. 2% is to be written off after 90 days (third month after the sale)
Additional information is provided:
Creditors are paid one (1) month after purchases.
Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the
operating expenses would increase by 5% per month over the budget period.
The following withdrawals are made monthly by the owner:
A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15th of May.
Cash to pay for the owner's personal telephone
Trading stock
P 30,000
P 70,000
Depreciation is calculated at P350,0000 per month.
A new vehicle costing P5,300,000 will be purchased and paid in April.
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