Assumptions: a) MYBABY Corporation wants to have a total of P1,800,000 Sales Budget for the year 2019. Of this budget, 15% is on Q1, 20% on Q2, 30% and 35% on Q3 and Q4 respectively. b) Sales Price for Q1 is P180.00. For the succeeding 2 quarters, sales price decreased by P15.00 every quarter. And for the Q4, sales price decreased by 20% from the preceding quarter. c) The Company would like to maintain 100 units in its ending inventory at the end of each month. d) Beginning inventory at the start of January amounts to 50 units. e) 2018's Q4 Accounts Receivable totaled P35,400. f) Cash Collections Percentage assumption for Q1 is 65%. On Q2 it will increase by 15%, will decline on Q3 by 10% and it will be the same percentage with Q3 on Q4. Sales Budget- 15 points Quarter 1 2 3 4 Year
Assumptions: a) MYBABY Corporation wants to have a total of P1,800,000 Sales Budget for the year 2019. Of this budget, 15% is on Q1, 20% on Q2, 30% and 35% on Q3 and Q4 respectively. b) Sales Price for Q1 is P180.00. For the succeeding 2 quarters, sales price decreased by P15.00 every quarter. And for the Q4, sales price decreased by 20% from the preceding quarter. c) The Company would like to maintain 100 units in its ending inventory at the end of each month. d) Beginning inventory at the start of January amounts to 50 units. e) 2018's Q4 Accounts Receivable totaled P35,400. f) Cash Collections Percentage assumption for Q1 is 65%. On Q2 it will increase by 15%, will decline on Q3 by 10% and it will be the same percentage with Q3 on Q4. Sales Budget- 15 points Quarter 1 2 3 4 Year
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Prepare a sales budget for MYBABY Corporation with the following assumptions.
Transcribed Image Text:Assumptions:
a) MYBABY Corporation wants to have a total of P1,800,000 Sales Budget for the year 2019. Of this
budget, 15% is on Q1, 20% on Q2, 30% and 35% on Q3 and Q4 respectively.
b) Sales Price for Q1 is P180.00. For the succeeding 2 quarters, sales price decreased by P15.00 every
quarter. And for the Q4, sales price decreased by 20% from the preceding quarter.
c) The Company would like to maintain 100 units in its ending inventory at the end of each month.
d) Beginning inventory at the start of January amounts to 50 units.
e) 2018's Q4 Accounts Receivable totaled P35,400.
f) Cash Collections Percentage assumption for Q1 is 65% . On Q2 it will increase by 15%, will decline on
Q3 by 10% and it will be the same percentage with Q3 on Q4.
Sales Budget- 15 points
Quarter
2
3
4
Year
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