Patty Corporation has estimated its activity for December 2006. Selected data from these estimated amounts are as follows: Sales P350,000 Gross Profit (based on sales) 30% Increase in trade account receivable during month P10,000 Change in accounts payable during the month 0 Increase in inventory during the month P5,000 Variable selling, and general and administrative expenses (S, G&A) include uncollectible accounts of 1% of sales. Total S, G&A is P35,000 per month plus 15% of sales Depreciation expense of P20,000 per month is included in fixed S,G&A. On the basis of the above data, what are estimated cash receipts from operations for December? A. P336,500 B. P340,000 C. P346,500 D. P350,000
Patty Corporation has estimated its activity for December 2006. Selected data from these estimated amounts are as follows:
|
Sales |
P350,000 |
|
Gross Profit (based on sales) |
30% |
|
Increase in trade account receivable during month |
P10,000 |
|
Change in accounts payable during the month |
0 |
|
Increase in inventory during the month |
P5,000 |
|
Variable selling, and general and administrative expenses (S, G&A) include uncollectible accounts of 1% of sales. |
|
|
Total S, G&A is P35,000 per month plus 15% of sales |
|
|
|
On the basis of the above data, what are estimated cash receipts from operations for December?
A. P336,500
B. P340,000
C. P346,500
D. P350,000
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