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Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given belov The June 30th balance sheet follows: Cash P 25,000 Accounts payable 45,000 Accounts receivable 110,000 Capital stock 300,000 Inventory 54,000 Retained earnings 94,000 Building and equipment (net) 250,000 Actual sales for June and budgeted sales for July, August, and September are given below: June P137,500 July 360,000 August 400,000 September 320,000 Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchase are paid for in the month of purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are P43,000, and the monthly depreciation expenses are P7,000. Question 1: What is the balance of the accounts receivable at the end of July? P288,000 Question 2: What is the balance of the accounts payable at the end of July? P166,500 Question 3: What is the balance of the inventory account at the end of July? P60,000

Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given belov The June 30th balance sheet follows: Cash P 25,000 Accounts payable 45,000 Accounts receivable 110,000 Capital stock 300,000 Inventory 54,000 Retained earnings 94,000 Building and equipment (net) 250,000 Actual sales for June and budgeted sales for July, August, and September are given below: June P137,500 July 360,000 August 400,000 September 320,000 Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchase are paid for in the month of purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are P43,000, and the monthly depreciation expenses are P7,000. Question 1: What is the balance of the accounts receivable at the end of July? P288,000 Question 2: What is the balance of the accounts payable at the end of July? P166,500 Question 3: What is the balance of the inventory account at the end of July? P60,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 4P
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Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below: The June 30th balance sheet follows: Cash P 25,000 Accounts payable 45,000 Accounts receivable 110,000 Capital stock 300,000 Inventory 54,000 Retained earnings 94,000 Building and equipment (net) 250,000 Actual sales for June and budgeted sales for July, August, and September are given below: June P137,500 July 360,000 August 400,000 September 320,000 Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchases are paid for in the month of purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are P43,000, and the monthly depreciation expenses are P7,000. Question 1: What is the balance of the accounts receivable at the end of July? P288,000 Question 2: What is the balance of the accounts payable at the end of July? P166,500 Question 3: What is the balance of the inventory account at the end of July? P60,000 (INSTRUCTIONS: DO NOT PUT COMMA or PESO SIGN ON YOUR ANSWERS)
Transcribed Image Text:Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below: The June 30th balance sheet follows: Cash P 25,000 Accounts payable 45,000 Accounts receivable 110,000 Capital stock 300,000 Inventory 54,000 Retained earnings 94,000 Building and equipment (net) 250,000 Actual sales for June and budgeted sales for July, August, and September are given below: June P137,500 July 360,000 August 400,000 September 320,000 Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchases are paid for in the month of purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are P43,000, and the monthly depreciation expenses are P7,000. Question 1: What is the balance of the accounts receivable at the end of July? P288,000 Question 2: What is the balance of the accounts payable at the end of July? P166,500 Question 3: What is the balance of the inventory account at the end of July? P60,000 (INSTRUCTIONS: DO NOT PUT COMMA or PESO SIGN ON YOUR ANSWERS)
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