1.1 BUDGETED INCOME STATEMENT AND BUDGETED STATEMENT OF FINANCIAL POSITION Benito Toma Corporation, maker of lambanog, is making its master budget for 2021. They buying lambanog from a supplier in Quezon Province and sell at a profit. Use the following information to answer the questions below. The Operating Budget for 2021: 1. The sales department budgeted 200,000 units @ P40.00 per unit 2. Merchandise inventory. The cost accounting department reported-merchandise inventory January 1, 2021- 2,500 units with a cost of P20.00 per unit. Desired ending inventory is 20,000 units. (Use First In-First Out Method (FIFO)) 3. The Purchasing department projected the cost in 2021 to increase to P24.00 per unit. 4. Last year, the fixed operating expenses was P800,000 (including depreciation expense of P60,000). For 2021, they expect it to remain the same. 5. Variable operating expenses per unit - P10.00 6. Interest expense is budgeted at P120,000 (P1,000,000 x 12%) 7. Income tax rate is 30% Capital Expenditure Budget, 2021 1. Acquisition of additional property and equipment to be bought December, 2021-500,000 No depreciation expense is budgeted for this acquisition. (Useful life is 10 years, no salvage value.) Financial Resource Budget, 2021 1. Loan amortization, excluding interest, is P500,000 and paid at the end of December, 2021. The balance is due in December, 2025. 2. Budgeted to issue 3,600 shares @ P120 per share. Of the P120 issue price, the par value is P100 per share and the premium is P20 per share. (These are common shares.) 3.The terms of sale: all sales are on credit and strictly 30 days. Assume that the sales for December, 2021 is P 800,000. 4. The terms of purchases is strictly 30 days. The balance of accounts payable at the end of 2021 is the same as the total purchases for the month of December, 2021 amounting to P400,000. 5. Budgeted cash dividends declared and paid - P100,000 6. Budgeted payment of operating expenses - P1,200,000. (With accrued operating expenses) 7. Payment for budgeted interest expense-P120,000. 8. The estimated unpaid income tax-P80,000. (For the 4th quarter, 2021 ITR) Last Year (2020): 1. The Statement of Financial Position, 2020 showed: Assets: Current Assets Cash Accounts receivable, net Merchandise inventory Last Year (2020): 1. The Statement of Financial Position, 2020 showed: Assets: Current Assets Cash Accounts receivable, net Merchandise inventory Total current assets Property and equipment, net Total Assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Income tax payable Loans payable, current portion Total current liabilities Non-current liabilities answer. Loans payable, non-current portion Total Liabilities Shareholders' equity 1,110,000 240,000 50,000 Share capital, par P100 Share premium Retained earnings Non-current liabilities Loans payable, non-current portion Total Liabilities Shareholders' equity Share capital, par P100 Share premium Total shareholders' equity Total Liabilities and Shareholders' Equity 2.000.000 Total current liabilities 590,000 1.090.000 540,000 20,000 Retained earnings Total shareholders' equity Total Liabilities and Shareholders' Equity 2.000.000 1,110,000 240,000 50,000 350.000 910.000 1,400,000 600.000 2,000,000 60,000 30,000 500,000 (due 2021) 590,000 500.000 (due 2025) BUDGETED INCOME STATEMENT 2021 1. How much is the budgeted Sales? 2. How much is the budgeted Cost of Sales? 3. How much is the budgeted Operating expenses? 500,000 (due 2025) 1,090,000 540,000 20,000 350.000 910,000 INSTRUCTION: Compute the needed information and indicate in the ANSWER SHEET ABOVE the correct