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 Cash Sales Credit Sales Purchases 220,000 32,000 |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. The 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.

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 Cash Sales Credit Sales Purchases 220,000 32,000 |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. The 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...

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Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
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CASE 1 The following are the information obtained from AMC Company:July August SeptemberCash Sales P24,000 P32,000 P36,000Credit Sales 220,000 300,000 240,000Purchases 180,000 240,000 220,000Operating Expenses 30,000 36,000 32,000Interest Expense - 4,000 -Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second monthfollowing, 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 themonth following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000monthly and are paid in the month incurred. The 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 solutionwith schedules of cash receipts and cash payments CASE 2 Sanchez Company, a wholesaler, budgeted the following sales for the…