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Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year to be:
Sales Payments
January P14,000 18,000
February 20,000 21,300
March 26,000 19,100
April 22,000 22,400
May 18,000 14,700
Seventy percent of the firm's sales on credit. Past experience shows that 40% of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. Prepare schedule of cash receipts for March, April, and May. Eddie pays its payments in the following month. Eddie had a cash balance of P2,000 on March 1, which is also its minimum required balance. There is an outstanding loan of P2,000 on March 1.
Problem 1: Prepare cash budget for March, April and May.
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