Elliana Inc. is preparing its Master Budget for 2022.

Budget information are as follows:

Sales
2022 First Quarter ₱ 280,000
Second Quarter 320,000
Thrid Quarter 360,000
Fourth Quarter 352,000

2023 First Quarter ₱ 320,000

The budgeted Finished Goods Inventories are:

2021 Mar. 31 ₱ 56,000
Jun. 30 52,000
Sept. 30 60,000
Dec. 31 48,000

The company uses the JIT system on its purchase of materials. It buys materials on cash basis.

Included in production cost each quarter is P 44,000 in depreciation. The operating expenses include depreciation
of P 12,000 per quarter. All production costs and operating expenses, with the exemption of depreciation are to be
paid during the quarter of incurrence.

Collections on sales are planned at 60% during the quarter of sales, the balance during the quarter
following the sale.

Dividends of P 20,000 are to be paid in June and again in December if covered by sufficient
profits. No dividends will be paid if the net profit is less than P 120,000.

Income tax is equal to 32% of the quarter’s income before tax and is paid in the following
quarter.

The company’s balance sheet as of December 31,2021 is as follows:

Elliana Inc.
Balance Sheet
December 31, 2021
Assets
Cash ₱ 76,000
Accounts Receivable 120,000
Inventory 44,000
Plant and Equipment, net 580,000
Total Assets ₱ 820,000

How much was the actual sales during the last quarter of 2021?

Acccounts Receivable at the end of 2018

 Bal. Received in the following quarter
Sale last quarter of 2018

What is the total budgeted cost of goods sold for the year 2022?
₱ 852,000

How much dividends will be paid in 2022?

NONE

What is the total budgeted cash disbursements for production costs and operating expenses for the year 2022?
₱ 872,000

What is the budgeted cash balance on December 31, 2022?

₱ 455,200

What is the expected balance of accounts receivable as of December 31, 2022?

₱ 140,800

Expected Cash 1st Quarter 2nd Quarter

Beginning Bal. ₱ 120,000 ₱ 112,000
Sales 280,000 320,000
Received from
Current Qtr. Sale 168,000 192,000
Received from
Previous Qtr. Sale 120,000 112,000
Total Received 288,000 304,000
Accounts Receivable 112,000 128,000

What is the budgeted balance of raw materials inventory as of December 31, 2022?
Raw Materials ₱ -
Inventory ₱ 48,000

What is the expected balance of income tax payable as of December 31, 2022?
20,480

What is the budgeted balance of retained earnings as of December 31, 2022?

What is the expected balance of the plant and equipment accounts as of December 31, 2022?

If a budgeted balance sheet as of December 31, 2022 is to be prepared, how much will be the total
assets?
 Production Cost Operating Expenses
₱ 192,000 ₱ 64,000
200,000 68,000
224,000 72,000
200,000 76,000

₱ 224,000 ₱ 72,000

on cash basis.

ng expenses include depreciation

xemption of depreciation are to be

during the quarter

Income Tax Payable ₱ 12,000

Capital Stock 640,000
Retained Earnings 168,000

Total Equity ₱ 820,000

₱ 120,000.00
 40%
₱ 300,000.00

ng expenses for the year 2022?

3rd Quarter 4th Quarter

₱ 128,000 ₱ 144,000 ₱ 504,000
360,000 352,000 ₱ 1,312,000

216,000 211,200 ₱ 787,200

128,000 144,000 ₱ 504,000

344,000 355,200 ₱ 1,291,200
144,000 ₱ 140,800 ₱ 524,800

ber 31, 2022?

ch will be the total