- CELEBI CORP. has the following sales forecast for the first four months of 20X9.
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JanuaryP70,000
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February70,000
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March90,000
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April80,000
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CELEBI’s cost of sales is 60% of sales.Fixed costs are P12,000 per month.CELEBI maintains inventory at 150% of the coming month’s budgeted sales requirements and has P55,000 inventory at January 1.
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CELEBI pays for its purchases 40% in the month of purchase, 60% in the following month.CELEBI collects 60% of its sales in the month of sale, 40% in the following month.All fix costs require cash disbursements.CELEBI’s balance sheet at December 31, 20X8 appears below.
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- Prepare a budgeted income statement for the first three months of 20X9, in total, not by month.
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Assets |
Equities |
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|
Cash |
P20,000 |
Accounts payable |
P18,000 |
|
Receivables |
30,000 |
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|
Inventory |
55,000 |
Stockholders’ equity |
87,000 |
|
Total |
P105,000 |
Total |
P105,000 |
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