Problem 1:

For team 4, they presented in an organized manner. It’s a good output. Audios are clear
and visually sorted out accordingly.

Siguro yung sa ano lang

4 Cash budget
Financing/borrowings were not computed according to the requirement which should
have been in increments of 1,000s so instead of 2,650 and 6,733.50 it should be 3k and
7k respectively.

So the interest expense will now be incorrect since principal amount is different, also the
ending cash balance for the quarter will be incorrect due to the different amounts in
inflows for the borrowings and outflows for the repayments of principal and interest

So this has a cascading effect on the other reports as well aside from the Cash budget.

Like in Income statement, the Net income will be misstated because of the interest
expense

While

Balance sheet will be affected the same way since we will close the net income as an
addition to our RE to arrive at the ending RE.

Problem 2

For problem 2, it was well-explained.

So only the repayment of interest portion because they paid it per month, but it should
have been only at the end of the quarter as stated. So this caused the difference in the
ending cash balance in the cash budget which again ripples the effect for both Income
statement (relating to interest expense impact since in their answer only the 1,600 formed
part of their Income Statement) and Balance Sheet (where Cash ending was different and
RE also will be impacted as well)

For problem 3
In the Cash budget, the cash collections per month that were plotted in the computations
were incorrect because it does not tie up with the cash collections schedule.
As a result, their borrowings to maintain the company requirement ending balance were
calculated differently because of the incorrect deficiency computed.
So again it will have a cascading effect on the other reports as well aside from the Cash
budget.

Like in Income statement, the Net income will be misstated because of the interest
expense

While

Balance sheet will be affected the same way since we will close the net income as an
addition to our RE to arrive at the ending RE and the cash ending as well will be
misstated.

But overall it’s a great report and good job the team for their collaborative efforts. Format-wise,
malinis and well-shown accordingly, audible din ang voices nila clearly. All the rest of the
answers are correct and clearly presented