Rindo Company expects to have P37,500 cash on hand on April 1st, and requires you to prepare a cash budget for the three months April to June. The following information is supplied to you: Forecasted: February March April May June Sales 75,000 84,000 90,000 120,000 135,000 Purchases 45,000 48,000 52,500 60,000 60,000 Wages 9,000 9,750 10,500 13,500 14,250 Factory 7,500 8,250 9,000 11,250 14,000 expenses Office expenses 6,000 6,000 6,000 6,000 7,000 Selling expenses 4,500 4,500 5,250 6,570 7,000 Other information: • Period of credit allowed suppliers 2 months. • 20% of sales for cash and period of credit allowed to customers for credit is one month. • Delay in payment of other expenses: 1 month (Hint: wages should never be delayed) • Income tax of P57,500 is due to be paid on June 15th. • The company is to pay dividend to shareholders and bonus to workers of P15,000 and P22,500 respectively in the month of April • Target cash balance is at least P20,000.
Rindo Company expects to have P37,500 cash on hand on April 1st, and requires you to prepare a cash budget for the three months April to June. The following information is supplied to you: Forecasted: February March April May June Sales 75,000 84,000 90,000 120,000 135,000 Purchases 45,000 48,000 52,500 60,000 60,000 Wages 9,000 9,750 10,500 13,500 14,250 Factory 7,500 8,250 9,000 11,250 14,000 expenses Office expenses 6,000 6,000 6,000 6,000 7,000 Selling expenses 4,500 4,500 5,250 6,570 7,000 Other information: • Period of credit allowed suppliers 2 months. • 20% of sales for cash and period of credit allowed to customers for credit is one month. • Delay in payment of other expenses: 1 month (Hint: wages should never be delayed) • Income tax of P57,500 is due to be paid on June 15th. • The company is to pay dividend to shareholders and bonus to workers of P15,000 and P22,500 respectively in the month of April • Target cash balance is at least P20,000.
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
Related questions
Question
How much is the funding requirement in April? (Just indicate as a positive amount, if any)
How much is the remaining cash at the end of April?
How much is the excess cash in May, if any?
How much is the funding requirement in June? (Just indicate as a positive amount, if any)
Transcribed Image Text:Rindo Company expects to have P37,500 cash on hand on April 15t, and requires you to prepare a cash budget for the three months April to June. The following
information is supplied to you:
Forecasted:
February
March
April
May
June
Sales
75,000
84,000
90,000
120,000
135,000
Purchases
45,000
48,000
52,500
60,000
60,000
Wages
9,000
9,750
10,500
13,500
14,250
Factory
7,500
8,250
9,000
11.250
14,000
expenses
Office expenses
6,000
6,000
6,000
6,000
7,000
Selling expenses
4,500
4,500
5,250
6,570
7,000
Other information:
• Period of credit allowed suppliers 2 months.
• 20% of sales for cash and period of credit allowed to customers for credit is one month.
• Delay in payment of other expenses: 1 month (Hint: wages should never be delayed)
• Income tax of P57,500 is due to be paid on June 15th.
• The company is to pay dividend to shareholders and bonus to workers of P15,000 and P22,500 respectively in the month of April
• Target cash balance is at least P20,000.
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