Reference no: EM133058488

Question - Celestine Co. started operations in January 2019. From your examination of Celestine's financial statements, you were able to obtain the following information:

12/31/19 12/31/20

Inventory P126,000 P133,200

Trade Receivable 85,800 60,000

Trade Payable 82,800 85,500

Sales 960,000 990,000

Additional information provides that Celestine paid its suppliers a total of P763,200 in 2019, In 2020, accounts totaling P6,000 were written off as uncollectible. In addition, bad debts expense of P4,500 per year was recognized in 2019 and 2020.

Required -

1. How much cash was disbursed during 2020 for purchases of merchandise?

P744,300

P747,000

P832,500

P879,300

2. How much was the cash collected during 2020 resulting from sales in 2019 and 2020?

P1,009,800

P1,079,400

P1,079,600

P1,085,400