Name: ______________________________________________ Activity: # 5 Date:

__________________Score:________

BUSINESS FINANCE - BUDGET

Instruction: For Items number 1-5, please refer to the problem and table below:
Corona Company has a beginning cash balance of PHP 90,000 and would like to maintain an ending balance
of PHP 100,000. Prepare a Cash Budget for January to May.

1. What is the cumulative excess cash balance for the month of January?
A. (33,500) B. (23,000) C. 39,000 D. 45,500
2. What is the cumulative excess cash balance for the month of February?
A. (33,500) B. (23,000) C. 39,000 D. 45,500
3. What is the cumulative excess cash balance for the month of March?
A. (33,500) B. (23,000) C. 39,000 D. 45,500
4. What is the cumulative excess cash balance for the month of April?
A. (120,500) B. (107,500) C. 39,000 D. 45,500
5. What is the cumulative excess cash balance for the month of May?
A. (120,500) B. (107,500) C. 39,000 D. 45,500
Instruction: For Items number 6-8, please refer to the problem below:
For the year ending December 2019, Granola Company has the following activities.
Sales : 4,310,000
Cost of Sales : 3,663,500
Operating Expenses : 246, 231
Interest Expense : 250,000
Taxes : 45,078

6. What it the gross profit of Granola Company?

A. 646,500 B. 810, 900 C. 945,000 D. 1,045,00
7. What is its operating income?
A. 297,890 B. 400, 269 C. 513,010 D. 630, 250
8. What is its income before taxes?
A.150,269 B. 263,010 C. 380,250 D. 400, 269
9-10. Do you think a company or a business will run successfully without usingdifferent tools of budgeting?