BM2108

NAME: DATE: SCORE:

TASK PERFORMANCE #2

Case 1: Include or exclude? (6 items x 1 point)

Indicate whether the following transactions should be included or excluded from the cash budget—no need for
an explanation.
1. Purchase of new equipment - included
2. Payment of income tax - included
3. Write-off of bad debts - excluded
4. Depreciation of equipment – excluded
5. Repairs on equipment - included
6. Payment to supplier – included

Case 2: Preparing budgets (2 items x 10 points)

ABC Company operates a retail business. The following data shows the budgeted amounts for the following
months:
Sales Labor Expenses
January 40,000.00 3,000.00 4,000.00
February 60,000.00 3,000.00 6,000.00
March 160,000.00 5,000.00 7,000.00
April 120,000.00 4,000.00 7,000.00

Other information is as follows:

1. Purchase cost is 75% of the selling price
2. Management policy requires to have sufficient inventory at the end of each month to meet the sales
demand for the next half month
3. Payables for materials and expenses are paid in the following month after the purchases are made
or expenses incurred.
4. Labor is paid in full at the end of each month
5. Expenses include a monthly depreciation charge of P2,000
6. Sales projections are based on the following assumptions:
a. 75% of sales are cash
b. 25% of sales are collectible within one month
7. The company will purchase equipment for cash costing P18,000 in February and pay dividends
amounting to P20,000 in March. The opening balance of cash on February 1 is P1000

02 Task Performance 2 *Property of STI

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Required:
1. Prepare a budgeted income statement for February and March
2. Prepare a cash budget for February and

March
CRITERIA POINTS
Rubric for grading Case 2:
Correct accounts and amounts used 7
Computed final amounts are correct and balanced 3
Total 10

February March
Beginning balance 1,000 (4,500)
Cash receipts
Sales receipts 55,000 135,000
Total cash receipts 56.000 130,000

Cash payments
Purchase payments 37,500 82,500
Labor 3,000 5,000
Cash expenses 2,000 4,000
Purchase equipment 18,000 -
Payment dividends - 20,000
Total Cash Payment 60,500 111,500

Net cash excess/ deficiency (4,500) 19,000

Financing
Loan proceeds - -
Loan repayments - -
Ending balance (4,500) 19,000

a.) Projected sales receipts January February March

Sales 40,000 60,000 160,000
Cash 75% 30,000 45,000 120,000
Accounts receivables 25% 10,000 15,000
Total Receipts 55,000 135,000

b.) Projected cash payments from production budget

January February March
Estimated sales 40,000 60,000 160,000
Purchase cost 75% 30,000 45,000 120,000
Sales: 50%
January 15,000
February 22,500 22,500
March 60,000
Purchase payments 37,500 82,500
Labor 3,000 5,000
Expense 2,000 2,000 4,000
Purchase of equipment 18,000
Payment of dividends 20,000
Total Purchase Payment 60,500 111,500

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February March Total

Sales 60,000 160,000 220,000
Less:
Purchase cost 0.75 45,000 120,000
45,000 120,000 165,000
Gross profit 15,000 40,000
Less:
Labor 3,000 5,000 8,000
Expense 6,000 7,000 13,000
9,000 12,000 21,000
Net income (loss) 6,000 28,000 34,000

Case 3: (3 items x 5 points)

Management accountants must try to implement systems that are acceptable to budget stakeholders to
produce positive effects.

Now, as a management accountant, choose three (3) negative attitudes, explain them and write your
recommendations on how you will address these negative attitudes from a management’s perspective. It could
either be a policy that the management will implement or an action that will be undertaken by management to
counteract the negative attitude.

Certified public accountants work in public companies, private companies, and government agencies.
These professionals are sometimes called expense accountants, chief accountants, industrial accountants,
personal accountants, or corporate accountants. Preparing data for use within an enterprise is one of the
characteristics that distinguishes management accountants from other types of accounting jobs, such as
public accounting. The example of negative attitudes is, someone who doesn’t collaborate with others,
Arrogant about their performance, and Taking credit for other people’s work. As a management accountant
you are dealing with the company’s finances, and if you don’t collaborate with your co-worker there will be a
miscommunication and might led to a big problem in the future. Do not be arrogant when it comes to your
performance at work, your performance will vary if you are still worthy of that job and position. Stealing a work
of others is not a very pleasing attitude not just in your work, but it brings up on how you deal with people
outside the work place. If I were to make a policy in the management or an action in the management, I would
personally take action and talk to the employee to have a positive and good environment in the work place. It
is also a good idea if once in a while there will be an open forum in the company, such as going on a retreat
with the whole team to have a safe place of work for everyone.

Rubric for grading Case 3:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting details,
4
and factual scenarios
Organization Expressed the points in a clear and logical
1
of ideas arrangement of ideas in the paragraph
Total 5

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