Problem 1. The following pertains to the financial records of SinoTrump Company: Sales Purchases P16.000 P20.000 Month January February March Additional information: P30,000 P40,000 P50,000 P28.000 a. Cash is collected from customers in the following manner: Month of sale 30% 70% Month following the sale b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month, e. A standby credit is available and money can be borrowed in multiples of P1.000. Requirements: 1. Cash collections from customers in March. 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 1. The following pertains to the financial records of SinoTrump Company:
Sales
Month
January
February
March
P30.000
P40,000
P50,000
Purchases
P16.000
P20.000
P28.000
Additional information:
a. Cash is collected from customers in the following manner:
Month of sale
30%
70%
Month following the sale
b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following
month.
c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation
expense). Both of these are paid in the month incurred.
d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the
month. e. A standby credit is available and money can be borrowed in multiples of P1.000.
Requirements:
1. Cash collections from customers in March.
2. Cash paid to suppliers in March.
3. Total cash disbursement in March.
4. Ending cash balance for March.
Transcribed Image Text:Problem 1. The following pertains to the financial records of SinoTrump Company: Sales Month January February March P30.000 P40,000 P50,000 Purchases P16.000 P20.000 P28.000 Additional information: a. Cash is collected from customers in the following manner: Month of sale 30% 70% Month following the sale b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month. e. A standby credit is available and money can be borrowed in multiples of P1.000. Requirements: 1. Cash collections from customers in March. 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.
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