• Fixed-asset outlays: Newmachinery costing PHP130,000 will be purchased and paid for in April. • Interest payments: An interest payment of PHP10,000 is due in May. • Cash dividend payments: Cash dividends of PHP20,000 will be paid in January. • Principal payments (loans): A PHP20,000 principal payment is due in February. • Rent payments: Rent of PHP5,000 will be paid each month. • Wages and salaries: Fixed salaries for the year are PHP96,000, or PHPS,000 per month. Wages are estimated as 10% of monthly sales. • Tax payments: Taxes of PHP25,000 must be paid in April. Jan Apr 0 102,500 110,000 125,000 140,000 477,500 Feb Mar Мay TOTAL Total Payments for Purchases Rent Payments Wages Salaries Tax Payment Fixed Asset Outlay 25,000 125,000 40,000 25,000 130,000 10,000 20,000 Interest Payment Cash Dividend Principal Payment Total Cash Payments 20,000 872,500
• Fixed-asset outlays: Newmachinery costing PHP130,000 will be purchased and paid for in April. • Interest payments: An interest payment of PHP10,000 is due in May. • Cash dividend payments: Cash dividends of PHP20,000 will be paid in January. • Principal payments (loans): A PHP20,000 principal payment is due in February. • Rent payments: Rent of PHP5,000 will be paid each month. • Wages and salaries: Fixed salaries for the year are PHP96,000, or PHPS,000 per month. Wages are estimated as 10% of monthly sales. • Tax payments: Taxes of PHP25,000 must be paid in April. Jan Apr 0 102,500 110,000 125,000 140,000 477,500 Feb Mar Мay TOTAL Total Payments for Purchases Rent Payments Wages Salaries Tax Payment Fixed Asset Outlay 25,000 125,000 40,000 25,000 130,000 10,000 20,000 Interest Payment Cash Dividend Principal Payment Total Cash Payments 20,000 872,500
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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Transcribed Image Text:• Fixed-asset outlays: Newmachinery costing PHP130,000 will be purchased and paid
for in
April.
• Interest payments: An interest payment of PHP10,000 is due in May.
• Cash dividend payments: Cash dividends of PHP20,000 will be paid in January.
• Principal payments (loans): A PHP20,000 principal payment is due in February.
• Rent payments: Rent of PHP5,000 will be paid each month.
• Wages and salaries: Fixed salaries for the year are PHP96,000, or PHPS,000 per month.
Wages are estimated as 10% of monthly sales.
• Tax payments: Taxes of PHP25,000 must be paid in April.
Jan
May
Apr
0 102,500 110,000 125,000 140,000 477,500
Feb
Mar
TOTAL
Total Payments for
Purchases
Rent Payments
Wages
Salaries
25,000
125,000
40,000
Таx Рayment
Fixed Asset Outlay
Interest Payment
Cash Dividend
Principal Payment
Total Cash Payments
A Company has a beginning cash balance of PHP80,000 and would like to maintain an
ending cash balance of PHP100,000 per month. Prepare A Company's Cash Budget for
January to May.
25,000
130,000
10,000
20,000
20,000
872,500
Jan
Feb
Mar
Apr
May
TOTAL
Cash Receipts
Less: Cash
Disbursements
Net Cash Flow
Add: Beginning Cash
Ending Cash Balance
Less: Minimum Cash
926,000
(872,500)
53,500
80,000
133,500
(100,000)
Balance
Cumulative excess cash
33,500
balance
(Cumulative required
financing)
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