Reference no: EM132931957

 

Questions -

Q1. YESNAYES Company's Statement of Financial Position on December 31, 2018 included the following accounts: Cash Php 25,000 Accounts receivable on: November 2018 sales 20,000 December 2018 sales 75,000 Accounts payable on: December 2018 purchases 32,000 Sales for the first three (3) months of 2019 were: January, Php 200,000; February Php250,000; March, Php 275,000 Purchases for the same period were: January, Php 140,000; February, php 200,000; March Php 220,000 Collections from customers were as follows: 50% in the month of sale, 30% in the month following the sale; 18% in the second month following sale; and 2% were uncollectible Payments to trade creditors were as follows: 60% in the month of purchase and 40% in the month following the purchase Operating expenses were estimated at Php 40,000 per month , including depreciation of Php 8,000.

1. How much is the expected cash collections for February, 2019?

2. How much is the expected cash payments for January 2019?

3. How much is the expected cash balance on March 31, 2019?

Q2. PASADO Company will sell in June 8,000 pieces of its merchandise at a unit price of Php 30.00. It is estimated that the gross profit is 25% of sales revenue. The inventory will be increased during the month by roughly Php 50,000 in expectation of higher sales volume for the opening of the school year. The amounts due to trade creditors will also increase by Php 30,000. How much is he estimated payment to be made during the month of June?