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    Final Exam

    Uploaded by

    Lopez, Azzia M.
    The document provides sales budget data for Pera Inc. for February through June, including cash and credit sales amounts. It also provides information on the company's collection patterns and asks the reader to calculate the total budgeted collection from April to June. The second part provides historical collection pattern data for Rainy Co.'s credit sales from July through December and asks the reader to calculate the total cash collections during the fourth quarter. The third part provides information about Sta. Elena Merchandising Company's plans to increase inventory and payables in December and asks the reader to estimate the payment amount for merchandise in December.

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    Final Exam

    Uploaded by

    Lopez, Azzia M.
    252 views3 pages
    The document provides sales budget data for Pera Inc. for February through June, including cash and credit sales amounts. It also provides information on the company's collection patterns and asks the reader to calculate the total budgeted collection from April to June. The second part provides historical collection pattern data for Rainy Co.'s credit sales from July through December and asks the reader to calculate the total cash collections during the fourth quarter. The third part provides information about Sta. Elena Merchandising Company's plans to increase inventory and payables in December and asks the reader to estimate the payment amount for merchandise in December.

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    FINAL EXAM

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    The document provides sales budget data for Pera Inc. for February through June, including cash and credit sales amounts. It also provides information on the company's collection patterns and asks the reader to calculate the total budgeted collection from April to June. The second part provides historical collection pattern data for Rainy Co.'s credit sales from July through December and asks the reader to calculate the total cash collections during the fourth quarter. The third part provides information about Sta. Elena Merchandising Company's plans to increase inventory and payables in December and asks the reader to estimate the payment amount for merchandise in December.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    252 views3 pages

    Final Exam

    Uploaded by

    Lopez, Azzia M.
    The document provides sales budget data for Pera Inc. for February through June, including cash and credit sales amounts. It also provides information on the company's collection patterns and asks the reader to calculate the total budgeted collection from April to June. The second part provides historical collection pattern data for Rainy Co.'s credit sales from July through December and asks the reader to calculate the total cash collections during the fourth quarter. The third part provides information about Sta. Elena Merchandising Company's plans to increase inventory and payables in December and asks the reader to estimate the payment amount for merchandise in December.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    FINAL EXAMINATION

    Pera Inc. prepared the following sales budget


    Month Cash Sales Credit Sales
    February P 80,000 P 340,000
    March 100,000 400,000
    April 90,000 370,000
    May 120,000 460,000
    June 110,000 380,000
    Collections are 40% in the month of sale, 45% in the month following the sale, and 10%
    two months following the sale. The remaining 5% is expected to be uncollectible. The
    company’s total budgeted collection from April to June amounts to
    a. P1,090,250 b. P1,325,500 c. P1,468,500 d. P1,397,500

    . The following historical pattern on its credit sales of Rainy Co. was presented:
    70% collection during the month of sale.
    15% in the first month after sale.
    10% in the second month after sale.
    4% in the third month after sale.
    1% uncollectible.
    The sales on account of the last six months of the year were reported as follows:
    July P120,000
    August 140,000
    September 160,000
    October 180,000
    November 200,000
    December 170,000
    The total cash collections during the fourth calendar quarter from sales made on
    account during the fourth calendar quarter would be

    a. P345,000 b. P550,000 c. P502,800 d. P460,000

    1. Sta. Elena Merchandising Company plans to sell in December 15,000 units of its
    product at a unit price of P20. The estimated gross profit is 25% of sales. The inventory
    will be increased in December in anticipation of higher sales volume for Christmas. The
    increase will be about P100,000. Amounts payable to trade creditors will also increase
    by P25,000. Estimate of payment to be made during the month of December for
    merchandise is

    a. P300,000 b. P250,000 c. P150,000 d. P100,000


    . JLT Corporation expects to sell 150,000 units during the first quarter of 1998, with an
    ending inventory for the quarter of 20,000 units. Variable manufacturing costs are
    budgeted at P50 per unit, with 70% of total variable manufacturing costs requiring
    cash payments during the quarter. Fixed manufacturing costs are budgeted at
    P120,000 per quarter, 40% of which are expected to require cash payment during the
    quarter.
    In the cash budget, payments for manufacturing costs during the quarter will total

    a. P8,500,000 b. P5,950,000 c. P5,998,000 d. P5,298,000

    2. MNO Corporation has a P35,000 balance of account receivable at the beginning of


    its budget period. It has budgeted P160,000 credit sales and expects to collect 70% of
    these during the budget period.

    What is the ending balance of accounts receivable assuming that all but 10% of the
    beginning balance is collected during the budget period.

    a. $3,560 b. P51,500 c. P71,500 d.


    P143,500

    . Harrison Company has budgeted its operations for August. No change in the
    inventory level during the month is planned. Selected data based on estimated amounts
    are as follows:

    Net loss $(120,000)


    Increase in accounts payable 48,000
    Depreciation expense 42,000
    Decrease in gross amounts of trade account receivables 72,000
    Purchase of equipment on 90-day credit terms 18,000
    Provision for estimated warranty liability 12,000
    What is the expected change in the cash position during August?
    A. $18,000 decrease. B. $30,000 decrease. C. $36,000 increase.
    D. $54,000 increase.

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