Group 1 Amity.

Seatwork

The accounts for the balance sheet, statement of changes in equity and
income statement of Mariefe Sarmiento, CPA are as follows:

Accounts Payable 63,500.00

Accounts Receivable 198,000.00
Accumulated Depreciation- Building 110,000.00
Accumulated Depreciation- Office
120,000.00
Equipment
Auditing Revenues 1,361,500.00
Building 750,000.00
Cash 118,500.00
Depreciation Expense- Building 55,000.00
Depreciation Expense- Office Equipment 60,000.00
Sarmiento, Capital Jan 1,2018 1,193,500.00
Sarmiento, Withdrawals 165,000.00
Land 75,000.00
Notes Receivable 60,000.00
Office Equipment 362,500.00
Office Supplies Expense 96,000.00
Office Supplies 28,000.00
Professional Development Expense 86,500.00
Rent Expense 52,500.00
Salaries Expense 735,000.00
Salaries Payable 30,500.00
Travel Expense 41,000.00
Utilities Expense 18,000.00

During the year, Sarmiento invested additional P22,000 in the business.

Required:
Prepare the following:
1. Income Statement
2. Statement of Changes in Equity
3. Balance Sheet
Use the below details to answer questions that follow.
You want to find out if your company can pay for a 3-million piece of
property which may be the site of another branch. The following
assumptions are used in the preparation of the cash budget.
Projected quarterly sales are as follows:
First quarter
P10 million

Second quarter
13 million

Third quarter
20 million

Fourth quarter
10 million

Seventy percent (70%) of the sales are collected in the quarter. The
remaining 30% is paid the following quarter.
Cost of sales is 75% of sales. Inventories are purchased in the same
quarter sales were generated. Eighty percent of the purchases is paid
within the quarter these purchases are made and the remaining twenty per
cent is paid the following quarter.
Included in fixed operating expenses are salaries, rent, security which
amount to 1.25 million for the first two quarters. The amount is expected
to increase to 1.75 million starting third quarter. Variable operating
expenses are 8% of sales.
Interest payments amount to P350 000 per quarter.
The company is subject to 30% tax rate. Below are the estimated income
tax payments per quarter:
First quarter
P300 000

Second quarter
450 000

Third quarter
650 000

Fourth quarter
410 000

Cash at the beginning of 2018 is P870 000.

Sale for the fourth quarter of 2018 was P16 million.

How much is the total projected sales for the year 2019?
How much is the cash collection for the first quarter of 2019?
How much is the cash collection for the second quarter of 2019?
How much is the total cost of sales for the year 2019?
How much is the total payments for purchases for the year 2019?
How much is the remaining uncollected sales at the beginning of 2019?
How much is the remaining uncollected sales at the end of 2019?
How much is the remaining unpaid purchases at the beginning of 2019?
How much is the remaining unpaid purchases at the end of 2019?
How much cash was paid in the first quarter for the purchases?
How much cash was paid in the third quarter for the purchases?
How much is the total variable expense for 2019?
How much is the total fixed expense for 2019?
How much is the total interest payment for 2019?
How much is the cash to be paid for income tax for 2019?
How much is the total cash disbursement for the first quarter of 2019?
How much is the total cash disbursement for the second quarter of 2019?
What is the ending balance of cash at the end of the second quarter of
2019?
What is the ending balance of cash at the end of the third quarter?
Can the company pursue with the purchase of the property on the third
quarter?