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Name: Date: Score: CASH BUDGET (25 Points) : 11 Task Performance 1

1. The document provides financial information for ABC Traders for January through May, including cash sales, credit sales, cash purchases, credit purchases, and operating expenses. It asks to complete a debtor collection schedule for April through May and prepare a cash budget for the same period. 2. Credit sales are collected in installments over time, with discounts offered for early payment. Other expenses like operating costs, purchases, and withdrawals are paid on a monthly schedule. Additional cash from investments is expected in May. 3. The task is to use the financial information and schedules to calculate collections on accounts receivable and complete a cash budget showing the projected cash inflows and outflows for ABC Traders from April through May.

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751 views2 pages

Name: Date: Score: CASH BUDGET (25 Points) : 11 Task Performance 1

1. The document provides financial information for ABC Traders for January through May, including cash sales, credit sales, cash purchases, credit purchases, and operating expenses. It asks to complete a debtor collection schedule for April through May and prepare a cash budget for the same period. 2. Credit sales are collected in installments over time, with discounts offered for early payment. Other expenses like operating costs, purchases, and withdrawals are paid on a monthly schedule. Additional cash from investments is expected in May. 3. The task is to use the financial information and schedules to calculate collections on accounts receivable and complete a cash budget showing the projected cash inflows and outflows for ABC Traders from April through May.

Uploaded by

Diane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NAME: DATE: SCORE:

CASH BUDGET (25 points)


Analyze the given scenario and accomplish the requirements.

On March 31, the cash in bank of ABC Traders has a balance of P18,400,000. The following is the summary of
transactions:

ACTUAL BUDGETED
January February March April May
Cash Sales P 27,500,000 P 24,500,000 P 21,500,000 P 27,500,000 P 36,000,000
Credit Sales 28,400,000 29,500,000 32,500,000 28,500,000 34,500,000
Cash Purchases 12,000,000 15,800,000 16,100,000 32,400,000 14,700,000
Credit Purchases 16,850,000 16,250,000 15,450,000 14,800,000 17,900,000
Operating Expenses 6,600,000 7,000,000 7,600,000 - -

Credit sales are to be collected as follows:


a. 20% in the month of sale (5% discount is allowed for prompt settlement)
b. 60% after 30 days (first month after the sale)
c. 18% after 60 days (second month after the sale)
d. 2% is to be written off after 90 days (third month after the sale)

Additional information is provided:


- Creditors are paid one (1) month after purchases.
- Operating expenses are paid in cash one (1) month after the expense occurred. It is expected that the
operating expenses would increase by 5% per month over the budget period.
- The following withdrawals are made monthly by the owner:
- A fixed deposit pf P45,000,000 with an interest of P4,000,000 is due to mature on the 15 th of May.

Cash to pay for the owner’s personal telephone P 30,000


Trading stock P 70,000

- Depreciation is calculated at P350,0000 per month.


- A new vehicle costing P5,300,000 will be purchased and paid in April.

Requirements:
1. Complete the debtor’s collection schedule of ABC Traders for the period April 01 to May 31.

11 Task Performance 1
2. Prepare the Cash Budget of ABC Traders for the period April 01 to May 31.

GRADING RUBRIC:
CRITERIA PERFORMANCE INDICATOR POINTS
Contains the required information: Company name,
Heading 2.5
statement name, and the date of the reporting period
Cash Receipts/Add Section Collections on accounts receivable are calculated 5
correctly.

CRITERIA PERFORMANCE INDICATOR POINTS


Contains the required information: Company name,
Heading 2.5
statement name, and the date of the reporting period
Cash Receipts/Add Section Total cash available is added correctly. 5
Cash Payments/subtract Section Total cash payments are added correctly. 5
Net Cash Flows and Cash Surplus Ending cash balance is subtracted correctly. 5

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