Reference no: EM132659980
Traders, Inc.Balance SheetSeptember 30, 200B
Assets Liabilities and Equity Cash P416,000
Accounts payable P1400,000
Accounts Receivable, net 1,200,000
Capital stock 7,200,000
Merchandise inventory 2,520,000
Retained earnings 7,536,000
Non-current assets 8,000,000
Total assets P12,136,000
Total liabilities and stockholders' equity 12,136,000
Additional information:
- Budgeted sales for October is P4,160,000; for November P4,000,000.
- Gross profit rate is 20%
- Of the total sales, 40% is on credit which the company collects in the month following the month of sale.
- Purchases in each month are composed of:
- 80% of the coming month's requirement
- 20% of the current month's requirement
- Purchases are paid for in the month following the month of purchase
Problem 1: The budgeted cash collections for the month of October is
a. P3,696,000 c. P4,160,000
b. P1,664,000 d. P3,216,000
Problem 1: Budgeted purchases during October is
a. P3,328,000 c. P3,225,600
b. P8,320,000 d. P4,032,000
Problem 1: The budgeted gross profit for the month of October is
a. P832,000 c. P4,288,000
b. P3,328,000 d. P4,160,000