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PROBLEM 1 (9 items) The following are the information obtained from AMC Company: Cash Sales Credit Sales Purchases Operating Expenses Interest Expense July P24,000 220,000 180,000 30,000 August P32,000 300,000 240,000 36,000 4,000 September P36,000 240,000 220,000 32,000 Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second month following, and 2% uncollectible. Credit sales for May and June are expected to be P200,000 and P180,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000 monthly, and are paid in the month incurred. Cash balance on June 30, 201A is P54,000." Required: Prepare a cash budget by month for the quarter ending September 30, 201A. Support your solution with schedules of cash receipts and cash payments.

PROBLEM 1 (9 items) The following are the information obtained from AMC Company: Cash Sales Credit Sales Purchases Operating Expenses Interest Expense July P24,000 220,000 180,000 30,000 August P32,000 300,000 240,000 36,000 4,000 September P36,000 240,000 220,000 32,000 Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second month following, and 2% uncollectible. Credit sales for May and June are expected to be P200,000 and P180,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000 monthly, and are paid in the month incurred. Cash balance on June 30, 201A is P54,000." Required: Prepare a cash budget by month for the quarter ending September 30, 201A. Support your solution with schedules of cash receipts and cash payments.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.2.1P
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PROBLEM 1 (9 items) The following are the information obtained from AMC Company: July P24,000 220,000 180,000 30,000 August P32,000 300,000 240,000 36,000 4,000 September P36,000 240,000 220,000 32,000 Cash Sales Credit Sales Purchases Operating Expenses Interest Expense Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second month following, and 2% uncollectible. Credit sales for May and June are expected to be P200,000 and P180,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000 monthly, and are paid in the month incurred. Cash balance on June 30, 201A is P54,000. Required: Prepare a cash budget by month for the quarter ending September 30, 201A. Support your solution with schedules of cash receipts and cash payments.
Transcribed Image Text:PROBLEM 1 (9 items) The following are the information obtained from AMC Company: July P24,000 220,000 180,000 30,000 August P32,000 300,000 240,000 36,000 4,000 September P36,000 240,000 220,000 32,000 Cash Sales Credit Sales Purchases Operating Expenses Interest Expense Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second month following, and 2% uncollectible. Credit sales for May and June are expected to be P200,000 and P180,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000 monthly, and are paid in the month incurred. Cash balance on June 30, 201A is P54,000. Required: Prepare a cash budget by month for the quarter ending September 30, 201A. Support your solution with schedules of cash receipts and cash payments.
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