2. The president of Emir's Corporation wanted to an in a no pu enough cash to pay the company's loan worth Php 600,000.00 by the end of 2020. a. The projected quarterly sales for the year 2020 are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Php 1,800,000.00 Php 1.200,000.00 Php 1,400,000.00 The fourth quarter sales in 2019 was Php 1,000,000.00. Ninety percent (90%} Php 1,600,000.00 of the sales were collected in the quarter they were made. The remaining ten percent (10%) was collected in the foilowing quarter. b. Assume that the operating expenses for each quarter are as follows: Quarter 2 Quarter 1 Php 125,000.00 Quarter 3 Php 175,000.00 Quarter 4 Php 200,000.00 Php 150,000.00 c. Cost of sales is 75% of sales. d. Interest expenses paid every quarter is Php 18,000.00. e. Income tax rate is 30%. The income taxes to be paid every quarter will be: Quarter 2 Php 45,000.00 Quarter 1 Quarter 3 Php 55,000.00 f. Expected cash balance at the end of 2020 is about Php 80,000.00. For 2021, target Quarter 4 Php 65,000.00 Php 35,000.00 cash is raised to Php 150,000.00 because of expected increase in sales. Prepare the 2021 cash budget of Emir's Corporation. Find out if they have enough cash to pay the Php 600,000.00 loan in the last quarter.
2. The president of Emir's Corporation wanted to an in a no pu enough cash to pay the company's loan worth Php 600,000.00 by the end of 2020. a. The projected quarterly sales for the year 2020 are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Php 1,800,000.00 Php 1.200,000.00 Php 1,400,000.00 The fourth quarter sales in 2019 was Php 1,000,000.00. Ninety percent (90%} Php 1,600,000.00 of the sales were collected in the quarter they were made. The remaining ten percent (10%) was collected in the foilowing quarter. b. Assume that the operating expenses for each quarter are as follows: Quarter 2 Quarter 1 Php 125,000.00 Quarter 3 Php 175,000.00 Quarter 4 Php 200,000.00 Php 150,000.00 c. Cost of sales is 75% of sales. d. Interest expenses paid every quarter is Php 18,000.00. e. Income tax rate is 30%. The income taxes to be paid every quarter will be: Quarter 2 Php 45,000.00 Quarter 1 Quarter 3 Php 55,000.00 f. Expected cash balance at the end of 2020 is about Php 80,000.00. For 2021, target Quarter 4 Php 65,000.00 Php 35,000.00 cash is raised to Php 150,000.00 because of expected increase in sales. Prepare the 2021 cash budget of Emir's Corporation. Find out if they have enough cash to pay the Php 600,000.00 loan in the last quarter.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 1P: Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2018 to $9.2 million...
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Transcribed Image Text:2. The president of Emir's Corporation wanted to find out if the company has
enough cash to pay the company's loan worth Php 600,000.00 by the end
of 2020.
a. The projected quarterly sales for the year 2020 are as foliows:
Quarter 1
Php 1.200,000.00 Php 1,400,000.00 Php 1,600,000.00
The fourth quarter sales in 2019 was Php 1,000,000.00. Ninety percent (90%)
of the sales were collected in the quarter they were made. The remaining ten percent
(10%) was collected in the foilowing quarter.
b. Assume that the operating expenses for each quarter are as follows:
Quarter 2
Quarter 3
Quarter 4
Php 1,800,000.00
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Php 125,000.00 Php 150,000.00 Php 175,000.00 Php 200,000.00
c. Cost of sales is 75% of saies.
d. Interest expenses paid every quarter is Php 18,000.0.
e. Income tax rate is 30%. The income taxes to be paid every quarter will be:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Php 35,000.00 Php 45,000.00 Php 55,000.00
f. Expected cash balance at the end of 2020 is about Php 80,000.00. For 2021, target
cash is raised to Php 150,000.00 because of expected increase in sales.
Php 65,000.00
Prepare the 2021 cash budget of Emir's Corporation. Find out if they nave
enough cash to pay the Php 600,000.00 loan in the last quarter.
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