Shalom Company wants to maintain a minimum monthly cash balance of P20,000. The budget for the...

  

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Shalom Company wants to maintain a minimum monthly cash balance of P20,000. The budget for the first quarter showed an ending cash balance of P21,000. In April, expected cash receipts are P288,000, and budgeted expenses, including depreciation of P30,000, are expected to be P321,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) Should Shalom Company enter into a financing agreement? Yes or No? Use the underlined words in capital letters as your choice. Shalom Company prepared the following sales budget for the first two quarters of 2023: March April 11,000 15,000 January 10,000 February 14,000 May 18,000 June 20,000 Unit sales Shalom Company sells the product at P15 per unit. 20% of sales is cash, and the balance is on credit. The company estimates that collection of sales on account will be 60% in the month of sales with the remainder in the following month. On December 31, 2022, accounts receivable was P60,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) What are the total expected cash receipts at the end of the first quarter? Shalom Company wants to maintain a minimum monthly cash balance of P20,000. The budget for the first quarter showed an ending cash balance of P21,000. In April, expected cash receipts are P288,000, and budgeted expenses, including depreciation of P30,000, are expected to be P321,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) Should Shalom Company enter into a financing agreement? Yes or No? Use the underlined words in capital letters as your choice. Shalom Company prepared the following sales budget for the first two quarters of 2023: March April 11,000 15,000 January 10,000 February 14,000 May 18,000 June 20,000 Unit sales Shalom Company sells the product at P15 per unit. 20% of sales is cash, and the balance is on credit. The company estimates that collection of sales on account will be 60% in the month of sales with the remainder in the following month. On December 31, 2022, accounts receivable was P60,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) What are the total expected cash receipts at the end of the first quarter?

Answer rating: 100% (QA)

SOLUTION To calculate the total expected cash receipts at the end of the first quarter ... View the full answer