Reference no: EM132934819

Question - The current year's operations of Cerelac, Inc.: December 31 January 1

Accounts Receivable P 51,000 P 45,000

Accounts Payable 60,000 33,000

Accrued Wages - 7,000

Collections from customers 794,000

Total cash payments 715,000

Selling expenses of P144,000 are 45% of gross profit.

Administrative expenses are 15% of sales.

This amount includes depreciation which is 20% of administrative expenses.

There are no unpaid selling and administrative expenses as of December 31.

Inventory per physical count at year-end totaled P125,000.

Required - What is the total purchases for the period?