PROBLEM 1:

A.
FEBRUARY MARCH APRIL
Sales 60000 70000 75000
Credit Sales 5400 63000 67500
COLLECTIONS
Cash
10% of sales 6000 7000 7500
60% 1st month after sale 37800
40% 2nd month after sale 21600
TOTAL RECEIPTS 66900

B.
Receivables end of June: 99000
90% of June sales 34300
40% of May credit sales 133200

PROBLEM 2:
January February March
Cash 4200 6000 7800
Credit 9800 11400 18200
Collections:
Cash 7800 6600
40% on the following month 5600 7280
60% on the second month 5880 8400
Total Collections 19,280 22,280

Cash budget
Collections 19,280 22,280
− Payments 21,300 19,100
Cashflow -2,020 3,180
+ Beginning Cash Balance 2,000 2,000
Cumulative Cash Balance -20 5,180
Loan (Repayment) 2,020 -3,180
Cumulative Loan Balance 4,020 840
Ending Cash Balance 2,000 2,000
 PROBLEM 3:
MAY JUNE
95000 110000 Requirement A
85500 99000
Cash Sales
Collection of sale in prior month
9500 11000 Collection of sales in two months prior
40500 51300 Total cash collections
25200 27000
75200 89300 Requirement B

Uncollected Sales in February

Uncollected Sales in March
Accounts Receivable April 1, 20x4
Sales of the quarter
Collections for the quarter
Accounts Receivable June 30, 20x4
April May
6600 5400 PROBLEM 4:
15400 12600
a. Preparation of schedule of expected cash collections from sale
5400
6160 Month Cash Collections
10920
22,480 April 369000
May 456000
June 457000
22,480 TOTAL 1,282,000
22,400
80 b. Computation of accounts receivable as of June 30.
2,000
2,080 Account receivable at June 30 = Cash collections of July and Augu
-80 Account receivable at June 30 = 174,000 + 19,000
760 Account receivable at June 30 = 193,000
2,000
PROBLEM 5:

Unit volume (3,000 x 1.20)

Price ( 200 ₱ x 1.10)
Total sales
Returns (5%)
Net sales
PROBLEM 6:

Projected sales
Desired ending inventory
Beginning inventory
Units to be produced

PROBLEM 7:

Projected sales
Desired ending inventory
Beginning inventory
Units to be produced

PROBLEM 8:

Projected sales
Desired ending inventory
Beginning inventory
Units to be produced

PROBLEM 9:

Credit sales
20% Collected in month of sales
70% Collected in month after sales
Total cash receipts

PROBLEM 10:

Budgeted sales in units

Add: Desired ending inventory*Total needs
Less: Beginning inventory
Required production

*10% of the following month’s sales in units.

 April May June
10% 10000 12000 11000
70% 50400 63000 75600
30% 16200 21600 27000
76600 96600 113600

16200
72000
88200
330000
-286800
131400

expected cash collections from sales, by month and in total, for the second quarter

eceivable as of June 30.

0 = Cash collections of July and August

0 = 174,000 + 19,000
0 = 193,000

3,600
220
792000
39600
752,400
 40,000 units
6,000 (15% x 40,000)
8,500
37,500

12,000 units (8,000 x 1.50)

600 (5% x 12,000)
400
12,200

50,000 units
5,600 (40% x 14,000)
14,000
41,600

September October November December

50000 40000 35000 60000
8000 7000 12000
35000 28000 24500
43000 35000 36500

April May June Quarter

50000 75000 90000 215000
y*Total needs 7500 9000 8000 8000
57500 84000 98000 223000
5000 7500 9000 5000
52500 76500 89000 218000

’s sales in units.