In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: Month Sales Purchases August (actual) P3,000,000.00 P3,500,000.00 September (actual) P4,500,000.00 P2,000,000.00 October (forecast) P1,000,000.00 P500,000.00 November (forecast) P1,500,000.00 P750,000.00 December (forecast) P2,000,000.00 P1,000,000.00 (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of P50,000 on marketable securities will be received in December. How much is the total cash receipts in November? A P3,900,000 P2,400,000 P1,850,000 D) P1,300,000
In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: Month Sales Purchases August (actual) P3,000,000.00 P3,500,000.00 September (actual) P4,500,000.00 P2,000,000.00 October (forecast) P1,000,000.00 P500,000.00 November (forecast) P1,500,000.00 P750,000.00 December (forecast) P2,000,000.00 P1,000,000.00 (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of P50,000 on marketable securities will be received in December. How much is the total cash receipts in November? A P3,900,000 P2,400,000 P1,850,000 D) P1,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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