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For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. 1. а. С. е.

For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. 1. а. С. е.

Cornerstones of Cost Management (Cornerstones Series)
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 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...
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PREPARE CASH BUDGET FOR YEAR 2021

1. For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. a. C. е.
Transcribed Image Text:1. For cash budget, assume the following: The company desires to maintain P15,000 minimum cash balance b. Dividend is declared every end of the 4th quarter of the year P15 per issued and outstanding share and paid every 2nd quarter of the following year At the end of the 2nd quarter, the company plans to purchase P100,000 worth of equipment. d. Any excess cash at the end of the 1st quarter of the year is used to buy long term investments P10,000 increments. 3% interest rate is credited to the company's bank account at the quarter's end based on original cost of investment In case of deficit, the company borrow from the bank P10,000 increments, payable in one year, 10% interest rate is automatically debited to the company's bank account at the end of every quarter. a. C. е.
Shrek & Fiona Company, manufacturer of a single product, is preparing their annual budget for 2021: The following are the assumptions to be used: Shrek & Fiona Company Statement of Financial Position As of December 31, 2020 Current Assets Current Liabilities Cash 18,000 Accounts Payable (N2) 240,000 Accounts Receivable (N1) 1,192,000 Taxes Payable 13,200 Less: Uncollectible accounts (22,400) 1,169,600 Dividends Payable 500,000 Inventories Total Current Liabilities 753,200 Raw Materials (12,000 pounds) 30,000 Finished Goods (4,000 units) 140,000 170,000 Stockholder's Equity Common Stock (100,000 shares) Total Current Assets 1,357,600 500,000 Non-current Assets Retained Earnings 360,400 Total Stockholder's Equity Property, plant, and equipment Less: Accumulated depreciation 320,000 860,400 (64,000) 256,000 Total Assets 1,613,600 Total Liabilities and SHE 1,613,600 N1 2020 3rd quarter sales P2,500,000 P 200,000 2020 4th quarter sales P3,100,000 992,000 P 1,192,000 N2 2020 3rd quarter purchases P300,000 P 75,000 2020 4th quarter purchases P330,000 165,000 P 240,000 Cash Collection Schedule For 2021 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cash Sales 512,000.00 580,800.00 600,160.00 660,176.00 2,353,136.00 Add: Credit Collections 1st Quarter Collections 1,204,224.00 614,400.00 184,320.00 2,002,944.00 2nd Quarter Collections 1,366,041.60 696,960.00 209,088.00 2,272,089.60 3rd Quarter Collections 1,411,576.32 720,192.00 2,131,768.32 4th Quarter Collections 1.552,733.95 1,552,733.95 Total Credit Collections 1,204,224.00 1,980,441.60 2,292,856.32 2,482,013.95 7,959,535.87 Total Cash Collections 1,716,224.00 2,561,241.60 2,893,016.32 3.142,189.95 10,312,671.87 10,312,671.87| Collection from Customers 1,716,224.00 2,561,241.60 2,893,016.32 3,142,189.95
Transcribed Image Text:Shrek & Fiona Company, manufacturer of a single product, is preparing their annual budget for 2021: The following are the assumptions to be used: Shrek & Fiona Company Statement of Financial Position As of December 31, 2020 Current Assets Current Liabilities Cash 18,000 Accounts Payable (N2) 240,000 Accounts Receivable (N1) 1,192,000 Taxes Payable 13,200 Less: Uncollectible accounts (22,400) 1,169,600 Dividends Payable 500,000 Inventories Total Current Liabilities 753,200 Raw Materials (12,000 pounds) 30,000 Finished Goods (4,000 units) 140,000 170,000 Stockholder's Equity Common Stock (100,000 shares) Total Current Assets 1,357,600 500,000 Non-current Assets Retained Earnings 360,400 Total Stockholder's Equity Property, plant, and equipment Less: Accumulated depreciation 320,000 860,400 (64,000) 256,000 Total Assets 1,613,600 Total Liabilities and SHE 1,613,600 N1 2020 3rd quarter sales P2,500,000 P 200,000 2020 4th quarter sales P3,100,000 992,000 P 1,192,000 N2 2020 3rd quarter purchases P300,000 P 75,000 2020 4th quarter purchases P330,000 165,000 P 240,000 Cash Collection Schedule For 2021 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cash Sales 512,000.00 580,800.00 600,160.00 660,176.00 2,353,136.00 Add: Credit Collections 1st Quarter Collections 1,204,224.00 614,400.00 184,320.00 2,002,944.00 2nd Quarter Collections 1,366,041.60 696,960.00 209,088.00 2,272,089.60 3rd Quarter Collections 1,411,576.32 720,192.00 2,131,768.32 4th Quarter Collections 1.552,733.95 1,552,733.95 Total Credit Collections 1,204,224.00 1,980,441.60 2,292,856.32 2,482,013.95 7,959,535.87 Total Cash Collections 1,716,224.00 2,561,241.60 2,893,016.32 3.142,189.95 10,312,671.87 10,312,671.87| Collection from Customers 1,716,224.00 2,561,241.60 2,893,016.32 3,142,189.95
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