Isabel Company would like to prepare a summary cash budget for March. The following information is...

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Isabel Company would like to prepare a summary cash budget for March. The following information is available: 1. The cash balance at March 1 is estimated to be P3,000. 2. March sales all on account are estimated to be P50,000. Sales are collected over a two-month period with 65 percent collected in the month of sales and the remainder in the subsequent month. February sales on account were P60,000. 3. Inventory purchases are expected to be P20,000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. February's purchase are P18,000. 4. Cash disbursements for selling and administrative expenses are expected to be P4,000 in March. 5. Depreciation expense for March is expected to be P5,000. 6. Loan and interest payment for March are expected to be P25,000. Isabel Company would like to prepare a summary cash budget for March. The following information is available: 1. The cash balance at March 1 is estimated to be P3,000. 2. March sales all on account are estimated to be P50,000. Sales are collected over a two-month period with 65 percent collected in the month of sales and the remainder in the subsequent month. February sales on account were P60,000. 3. Inventory purchases are expected to be P20,000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. February's purchase are P18,000. 4. Cash disbursements for selling and administrative expenses are expected to be P4,000 in March. 5. Depreciation expense for March is expected to be P5,000. 6. Loan and interest payment for March are expected to be P25,000.

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