Reference no: EM132534154

Petesy Corporation is preparing its Master Budget for 2019. Budget information is as follows:

                                        Sales                  Production Cost                     Operating Expenses

2019 1st Quarter        P280,000                     P192,000                       P64,000

2nd Quarter                320,000                      200,000                          68,000

3rd Quarter                   360,000                     224,000                         72,000

4th Quarter                      352,000                    200,000                     76,000

2020 1st Quarter                320,000                      224,000                      72,000

The budgeted Finished Goods Inventories are:

2018 March 31 P56,000

June 30 52,000

September 30 60,000

December 31 48,000

The company uses the JIT system on its purchase of materials. It buys materials on cash basis.

1. Included in the production cost each quarter is P44,000 in depreciation. The operating expenses include depreciation of P12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be paid during the quarter of incurrence.
2. Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter following the sale. Dividends of P20,000 is to be paid in June and again in December if covered by sufficient profits. No dividends will be paid if the net profit is less than P120,000.
3. Income Tax is equal to 32 of the quarter's income before tax and is paid in the following quarter.

The Statement of Financial Position as of December 31, 2018 is as follows:

Petesy Corporation

Statement of Financial Position

December 31, 2018

Assets                                                         Equities

Cash P76,000                                           Income tax payable P 12,000

Accounts Receivable 120,000

Inventory 44,000                                       Share Capital 640,000

Plant and Equipment 580,000                        Retained Earnings 168,000

Total 820,000                                             Total P820,000

Question 1: What is the budgeted cash balance on December 31, 2019?

Question 2: What is the expected balance of accounts receivable as of December 31, 2019?

Question 3: What is the budgeted balance of raw materials inventory as of December 31, 2019?

Question 4: What is the expected balance of Income tax payable as of December 31, 2019?

Question 5: What is the budgeted balance of Retained Earnings as of December 31, 2019?

Question 6: What is the expected balance of the plant and equipment account as of December 31, 2019?

Question 7: If a budgeted statement of financial position as at December 31, 2019 is to be prepared, total assets will be how much?