Reference no: EM133041104
1. Vertical Ladder Company (VLC) forecasts that its sales for January through April will be P 60,000, P 70,000, P 90,000, and P 80,000, respectively. All sales are made on credit, and past experience indicates that 30 percent of the sales will be collected in the month of the sales and the remaining 70 percent will be collected the following month. Customers who pay in the month of the sale will take 2 percent cash discount offered by VLC for paying early. VLC normally purchases and pays the raw materials, which cost 55% of the sales prices, one month prior to selling the finished products. Employees' wages represent 25 percent of the sales price, and rent is P 3,000 per month. At the beginning of February, VLC expects P 4,000 cash, which is P 1,000 greater that its target cash balance. Using the information provided, construct a cash budget for February and March.
Required: Compute the following
A. Total cash receipts for February and March.
B. Total cash disbursements for February and March
C. The net cash flows for Feb. and March
D. How much is the cash surplus (shortage) for Feb. and March?
2.Pinky's Cosmetics expects to have P30 million in credit sales during the coming year. In spite of a national distributing system, all remittances are sent to the home office. A proposed system can eliminate three days of float, releasing funds which, when invested, will earn 11%. What annual savings can Pinky's Cosmetics expect if the system is implemented? Use a 365-day year.
3.Green Seed Sales, Inc. expects to generate sales of P18 million in the coming year. All sales are done on a credit basis, net 30 days. Green has estimated that it takes an average of three days for payments to reach their central office and an additional day to process the payments. What is the opportunity cost of the funds tied up in the mail and processing? Green uses a 360-day year in all calculations and can invest free funds at 8%.
|
Determine the company deferred tax balance for the year
: Determine the company's deferred tax balance for the year ended December 31, 2020, showing the supporting workings
|
|
Record the journal entries for the two share transaction
: The company repurchased and cancelled a further 475,000 shares at a cost of 63 per share. Record the journal entries for the two share transaction in 2021
|
|
What the direct-labor related overhead rate
: Of the overhead, $92,500 consists of machine-related costs and the balance is direct labor-related costs. What the direct-labor related overhead rate
|
|
What will be the price of these bonds
: The yield to maturity on similar A bonds is 11 percent. What will be the price of these bonds if they receive either an A or aAA rating
|
|
Construct a cash budget for february and march
: 1. Vertical Ladder Company (VLC) forecasts that its sales for January through April will be P 60,000, P 70,000, P 90,000, and P 80,000, respectively.
|
|
How much interest expense will be paid on august
: he mortgage entailed equal monthly payments of $3,000 at the end of each month. The interest rate is 5% per year. How much interest expense will be paid on Augu
|
|
Establishing positive culture in fire service organization
: Theres an importance of a positive culture in the fire service organization when it comes to accepting and implementing a community risk reduction (CRR) program
|
|
Determine the re-order point in terms of the proposed policy
: The annual demand for denim material is 20 000 metres. Raffaelo Limited is in production for 270 days per annum. Determine the re-order point in terms of policy
|
|
Have you ever used the electronic fund transfer process
: Have you ever used the electronic fund transfer process? Were you satisfied with the result? (Obj. 1 - Identify and define electronic business activities.)
|