ETC Electronics Company's actual sales and purchases for june through september:
Sales: april (actual) - P320,000
may (actual) - P300,000
june (forecast) - P275,000
july (forecast) - P275,000
august (forecast) - P290,000
september (forecast) - P330,000
april (actual) - P130,000
may (actual) - P120,000
june (forecast) - P120,000
JULY (forecast) - P180,000
august (forecast) - P200,000
september (forecast) - P170,000
The company makes 10% of its sales for cash and 90% on credit. Of the credit sales, 20% are collected in the m0nth after the sale and 80% are collected 2 m0nths after. ETC pays for 40% of its purchases in the m0nth after purchase and 60% two m0nths after.
Labor expense equals 10% of the current m0nth's sales. Overhead expense equals P12,000 per m0nth. Interest payments of P30,000 are due in June and September. A cash dividend of P50,000 is scheduled to be paid in June. Tax payments of P25,000 are due in June and September. There is a scheduled capital outlay of P300,000 in September.
ETC Electronics' ending cash balance in May is P20,000. The minimum desired cash balance is P10,000. Prepare a schedule of m0nthly cash receipts, m0nthly cash payments, and a complete m0nthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is P50,000. Excess cash (above P50,000) is used to buy marketable securities. Marketabke securities are sold before borrowing funds in case of a cash sh0rtfall (less than P10,000)
please answer, I need your help.. This is management consultancy.. Thanks..