2B Corporation is preparing its master Budget for 200B.

Budget information are as follows :

Production
Sales Cost

200B 1st quarter 280,000 192,000

2nd quarter 320,000 200,000
3rd quarter 360,000 224,000
4th quarter 352,000 200,000

200C 1st quarter 320,000 224,000

The budgeted finished goods inventories are :

200B 31-Mar 56000
30-Jun 52000
30-Sep 60000
Dec. 31 48000

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

Included in production cost each quarter is 44,000 in depreciation .The operating expenses
include depreciation of 12,000 per quarter . All production costs and operating expenses ,
with the exemption of depreciation are to be paid during the quarter of incurrence .

Collections on sales are planned at 60% during the quarter of sales , the balance during
the quarter following the sale .
Dividends of 20,000 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 120,000 .

Income tax is equal to 32% of the quarter's income before tax and is paid in the following quarter :

The company's statement of financial position as of December 31 , 200A is as follows :

2B Corporation
Statement of financial Position
December 31 , 200A

ASSETS
Cash 76000
Accounts Receivable,net 120000
Inventory 44000
Plant and equipment ,net 580000
Total Assets 820000

Compute the following :

A How much was the actual sales during the last quarter of 200A?

ANSWER
Accounts Receivable 120,000.00
Divided by 40%
Sales in last quarter 300,000.00

B What is the total budgeted cost of goods sold for the year 200B ?

ANSWER
192,000 + 200,000 + 224,000 + 200,000 = 816,000

C How much dividend will paid in 200B?

ANSWER
The answer is 0. No dividend payment will be made if the net income is less than

D What is the total budgeted cash disbursements for production costs and operating expe
for the year 200B?

ANSWER
200,000 + 212,000 + 240,000 + 220,000 = 872,000

E What is the budgeted cash balance in December 31 , 200B ?

ANSWER
455,200

F What is the expected balance of accounts receivable as of Dec. 31 ,200B?

ANSWER
Expected accounts receivables as on December 31, 200B = P140,800

G What is the budgeted balance of raw materials inventory as of Dec. 31 , 200B?

ANSWER
The amount of ending raw materials as of Dec. 31, 200B is P48,000

H What is the expected balance of income tax payable as of Dec, 31 , 200B ?

ANSWER
Net income P 101,500 x 32% = P 32,480 - P 12,000 = P 20,480

I What is the budgeted balance of retained earnings as of December 31 , 200B ?

ANSWER
277,600

J What is the expected balance of the plant and equipment account as of December 31 , 2

ANSWER
356,000

K If a budgeted statement of financial position as at Dec. 31 200B is to be prepared ,

how much is the total assets ?

ANSWER
The Total assets =938,080
 re as follows :
Operating
Expenses

64,000
68,000
72,000
76,000

72,000

on cash basis .

rating expenses
ng expenses ,

the following quarter :

EQUITIES
Incoe tax payable 12,000

Capital stock 640,000

Retained Earnings 168,000
 Total Equity 820,000

f the net income is less than P 200,000.

tion costs and operating expenses

Dec. 31 ,200B?

1, 200B = P140,800

s of Dec. 31 , 200B?
 200B is P48,000

Dec, 31 , 200B ?

December 31 , 200B ?

account as of December 31 , 200B ?

200B is to be prepared ,