Alpha CD Inc. began operations on January 1 of the current year with a P12,000 cash balance. Forty percent of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 20% of purchases are paid in the month of purchase, and 80% are paid in the month following purchase. The following data apply to January and February: January P35,000 30,000 7,000 February P55,000 40,000 9,000 Sales Purchases Operating expenses

Alpha CD Inc. began operations on January 1 of the current year with a P12,000 cash balance. Forty percent of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 20% of purchases are paid in the month of purchase, and 80% are paid in the month following purchase. The following data apply to January and February: January P35,000 30,000 7,000 February P55,000 40,000 9,000 Sales Purchases Operating expenses

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EA: Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale,...

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