What is the budgeted cash balance on December 31, 2022?What is the expected balance of accounts receivable as of December 31, 2022?What is the budgeted balance of raw materials inventory as of December 31, 2022?What is the expected balance of income tax payable as of December 31, 2022? Madonna Company is preparing its Master Budget for 2022. Budget information are as follows:SalesProduction Cost Operating Expenses2022 First quarterP280,000P192,000P64,000200,00068,000Second quarterThird quarterFourth quarter320,000360,000224,00072,000352,000200,00076,0002023 First quarter320,000224,00072,000The budgeted finished goods inventories are:2021:March 31P 56,00052,000June 30September 30December 3160,00048,000The company uses the JIT system on its purchase of materials. It buys materials on cash basis.Included in production cost each quarter is P 44,000 in depreciation. The operating expensesinclude depreciation of P 12,000 per quarter. All production costs and operating expenses, with theexemption of depreciation are to be paid during the quarter of incurrence.Collections on sales are planned at 60% during the quarter of sales, the balance during the quarterfollowing the sale.Dividends of P 20,000 are to be paid in June and again in December if covered by sufficientprofits. No dividends will be paid if the net profit is less than P 120,000.Income tax is equal to 32% of the quarter's income before tax and is paid in the followingquarter.The company's balance sheet as of December 31,2021 is as follows:Madonna CompanyBalance SheetDecember 31, 2021AssetsEquitiesCashP 76,000Income taxP 12,000payableAccounts receivable, netInventoryPlant and equipment, netTotal assets120,00044,000580,000P 820,000Capital stockRetained EarningsTotal equity640,000168,000P 820,000

Cash Budget The purpose of preparing the cash budget to know the total cash inflows and cash…

What is the budgeted cash balance on December 31, 2022? What is the expected balance of accounts receivable as of December 31, 2022? What is the budgeted balance of raw materials inventory as of December 31, 2022? What is the expected balance of income tax payable as of December 31, 2022?

What is the budgeted cash balance on December 31, 2022? What is the expected balance of accounts receivable as of December 31, 2022? What is the budgeted balance of raw materials inventory as of December 31, 2022? What is the expected balance of income tax payable as of December 31, 2022?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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