CASH AND CASH EQUIVALENTS ANSWERS - GALLOGO

1 Land Bank 500,000.00

Payroll Account - NB 100,000.00
Traveler's Check 50,000.00
Petty Cash 16,000.00
36,000.00
ANSWER: 702,000.00 C

2 CASH 555,000.00
DIT (5,000.00)
Petty Cash- Voucher (1,000.00)
NSF (20,000.00)
ANSWER: 529,000.00 D

3 Demand Deposit 1,500,000.00

Certificate 500,000.00
SAVINGS DEPOSIT 50,000.00
NSF CHECK (20,000.00)
IOU (30,000.00)
PETTY CASH 10,000.00
Adjustments 100,000.00
(200,000.00)
ANSWER 1,910,000.00 A

4 CASH - BEG 186,000.00

CASH SALES 500,000.00
COLLECTIONS 1,822,000.00
PAYMENT OF Aps (1,740,000.00)
OPEX (321,000.00)
447,000.00 B

5 BAL. PER BOOK 170,000.00

CM 150,000.00
DM (20,000.00)
BOOK ERROR (4,500.00)
295,500.00 B
NAME: DARILL LANCE GALLOGO
RE: FINALS EXAMINATION
SUBJECT: MAS

FIVE SITUATIONS WHERE I USE REPSONSIBILITY ACCOUNTING:

1 I’ve been into business since last quarter of 2020 and our main issue is how to come up with an
effective plan to increase our net income despite the restrictions, competition, challenges we
have as a start-up business. Since we are a partner of 4, we have to make sure that our Net
Income should suffice the amount of cash we invested to the business. Thus:

ROI = Net income (which we have to compute to set of monthly goal)

Capital/Investment

Since we all agreed to have 25% P & L ratio, here's what Net income we must meet:

Net income = 15,000 x 25%

Net income = 3,750

2 Each of us have been assigned to a task. Whereas me, I was assigned in making Sales Report
and making promotional rates (which I miserably failed). Since our goal was already aligned, the
problem in execution occurs. Partner 1 is really eager to have the design of the brand done, but
Partner 2 have a lot of excuses. Due to this problem, our product is already at disadvantage due
to lack of phyisical appearance which it really did take a toll in our Sales.

One of the problems we encountered was our profit margin is not at the ideal rate (45%). So we have to
restructure our products' selling price to attain an ideal Income for the business. Here's how we do it:
COS Profit Margin Additional Mark up SELLING PRICE
Product 1 100.00 45% 45% 190.00
Product 2 130.00 45% 45% 247.00

Note: The additional mark up was intended to cover up the controllable expenses we have
like office rental, stickers, fuel and oil for delivery, and etc.

4
In the early stage of the business and due to lack of manpower to cut our expenses, we have to do
everything (even until now). Thus, Sales if our only focus. But this approach backfired. We were so focus
in attaining sales that we weren't able to take control of the selling price we gave to our customers, which
resulted to a very low Net Income.
 In the early stage of the business and due to lack of manpower to cut our expenses, we have to do
everything (even until now). Thus, Sales if our only focus. But this approach backfired. We were so focus
in attaining sales that we weren't able to take control of the selling price we gave to our customers, which
resulted to a very low Net Income.

5
To ensure that the Business will prosper, we set a monthly Sales Quota that we have to achieve (with
proportionate to the ideal Net Profit we want) .

FIVE SITUATIONS WHERE I USE BUDGETING AND CAPITAL BUDGETING:

I have always been a commuter since day one. However, this pandemic struck and we lost almost a lot of
our cash inflows (you know what I mean miss). That's why, I have decided to purchase a bike.

2
By purchasing a bike, I spent around 5,000 for a brand new one. As a short-term cash management
decision making, this hurts a lot. However, I realized that I actually saved more and alloted my extra
money to other personal stuffs which was shown in the computation:

Equipment (5,000.00)
maintenance on bike (1,000.00)

Add: Savings in Daily transpo expense 100.00

Net outflow (5,900.00)

I have to spend 5,900 for the first year in order for me to acquire my bike, which has greatly
helped me during speak office hours.