Problem 1. The following pertains to the financial records of SinoTrump Company: Month Sales Purchases P16,000...

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Problem 1. The following pertains to the financial records of SinoTrump Company: Month Sales Purchases P16,000 P30,000 P40,000 P20,000 $50,000 28,000 January February March Additional information: a. Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70% b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4,000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month. e. A standby credit is available and money can be borrowed in multiples of P1,000. Requirements: 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March. Problem 1. The following pertains to the financial records of SinoTrump Company: Month Sales Purchases P16,000 P30,000 P40,000 P20,000 $50,000 28,000 January February March Additional information: a. Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70% b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4,000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month. e. A standby credit is available and money can be borrowed in multiples of P1,000. Requirements: 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.

Answer rating: 100% (QA)

Lets calculate the cash paid to suppliers total cash disbursement and the ending cash balance for Ma... View the full answer