ASSIGNMENT: FINANCIAL PLANNING

7.1
Schedules of Cash Receipts and Disbursements for June
Cash Receipts
From sale of June (7% x 85,000) P59,000
From sale May (2% x 90,000) 18,000
From sale April (1% x 80,000) 8,000
Total Cash Receipts P85,500

Cash Disbursements
Purchases of May (98% x 40,000) P39,200
Operating Expenses 5,000
Total Cash Disbursements P44,200

Net increase in cash P41,300

7.2
Cash Receipts January February March
Beginning cash balance 4,500 2,600 300
From current month sales 28,000 36,000 12,000
From prior month sales 54,000 42,000 54,000
Total cash receipts 82,000 78,000 66,000
Total cash available 86,500 80,600 66,300
Cash Disbursements
From Purchases:
Current month 14,000 12,000 10,000
From 1 mo. prior purchases 40,000 35,000 30,000
From 2 mo. prior purchases 21,000 24,000 21,000
Total payments on purchases 75,000 71,000 61,000
Labor expense 4,000 4,000 4,000
Sales salaries 2,000 2,000 2,000
Commissions @ 2% of sales 1,400 1,800 600
Other expenses 1,500 1,500 1,500
Total cash disbursements 83,900 80,300 69,100
Ending cash balance P2,600 P300 P(2,800)
1.

2. The company would borrow cash in the month of March and will invest cash in January and February.

7.3
 June July August Total
Schedule of sales budget
Credit sales, 30% 120,000 132,000 150,000 402,000
Cash sales, 70% 280,000 308,000 350,000 938,000
Total sales 400,000 440,000 500,000 1,340,000

Schedule of cash collections

Cash sales 280,000 308,000 350,000 938,000
Collections from prior month 150,000 120,000 132,000 402,000
Total collections P430,000 P428,000 P482,000 P1,340,000

7.4
January February March Total
Schedule of sales budget
Credit sales, 80% 144,000,000 168,000,000 216,000,000 528,000,000
Cash sales, 20% 36,000,000 42,000,000 54,000,000 132,000,000
Total sales P180,000,000 P210,000,000 P270,000,000 P660,000,000

Schedule of cash collections

Cash sales 36,000,000 42,000,000 54,000,000 132,000,000
Collections from current month 72,000,000 84,000,000 108,000,000 264,000,000
Collections from prior month 60,800,000 57,600,000 67,200,000 185,600,000
Collections from 2 prior month 20,000,000 15,200,000 14,400,000 49,600,000
Total collections P188,800,000 P198,800,000 P243,600,000 P631,200,000

7.5
Cash budgeted to be collected in March
Collections
From January (300k x 12%) 36,000
From February (400k x 25%) 100,000
From February (400k x 10% x 99%) 39,600
From March (500,000 x 50% x 99%) 247,500
Total Collections P423,100