Pomelo Corporation has estimated its activity for December 2014. Selected data from these estimated amounts are as follows: Sales = P350,000 Gross profit (based on sales) = 30% Increase in trade accounts receivable during the month = 10,000 Change in accounts payable during the month = 0 Increase in inventory during the month = 5,000 Variable selling, general & administrative expenses (S,G,& A) includes for 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. 15. On the basis of the above data, what are the estimated cash receipts from operations for December?
Pomelo Corporation has estimated its activity for December 2014. Selected data from these estimated
amounts are as follows:
Sales = P350,000
Gross profit (based on sales) = 30%
Increase in trade
Change in accounts payable during the month = 0
Increase in inventory during the month = 5,000
Variable selling, general & administrative expenses (S,G,& A) includes for uncollectible accounts of 1%
of sales.
Total S,G,& A is P35,000 per month plus 15% of sales.
15. On the basis of the above data, what are the estimated cash receipts from operations for December?
a. P336,500 b. P340,000 c. P346,500 d. P350,000
16. On the basis of the above data, what are the estimated cash disbursements from operations for December?
a. P309,500 b. P313,000 c. P314,000 d. P318,000
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