Frosty Corp. has a minimum cash balance of PHP 100,000 and forecasted sales of PHP 1,000,000. Accounts receivable is expected to be 5% of sales while inventory is expected to be 15% of cost of sales. Gross profit ratio is 20%. Non-Current assets are budgeted at PHP 400,000. Questions: 1. How much is the total asset requirement? 2. How much is the Accounts receivable? 3. How much is the Inventory?

Frosty Corp. has a minimum cash balance of PHP 100,000 and forecasted sales of PHP 1,000,000. Accounts receivable is expected to be 5% of sales while inventory is expected to be 15% of cost of sales. Gross profit ratio is 20%. Non-Current assets are budgeted at PHP 400,000. Questions: 1. How much is the total asset requirement? 2. How much is the Accounts receivable? 3. How much is the Inventory?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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