Problem 1. The following pertains to the financial records of SinoTrump Company: Sales Purchases P16.000 P20.000 Month January February March Additional information: P30,000 P40,000 P50,000 P28.000 a. Cash is collected from customers in the following manner: Month of sale 30% 70% Month following the sale b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month, e. A standby credit is available and money can be borrowed in multiples of P1.000. Requirements: 1. Cash collections from customers in March. 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.

Problem 1. The following pertains to the financial records of SinoTrump Company: Sales Purchases P16.000 P20.000 Month January February March Additional information: P30,000 P40,000 P50,000 P28.000 a. Cash is collected from customers in the following manner: Month of sale 30% 70% Month following the sale b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month, e. A standby credit is available and money can be borrowed in multiples of P1.000. Requirements: 1. Cash collections from customers in March. 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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