Scribd
Upload
183 views

Answer: 215,000

The document provides 4 examples of calculating financial metrics like segment margin, variable costs, cash budgets, and cash disbursements. The examples give sales revenues, costs, profit, and cash flow numbers to determine answers like the segment margin of a product line, the variable costs for a sales area, how much money needs to be borrowed for a cash budget, and the estimated cash disbursements for inventories.

Uploaded by

Winoah Hubalde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
183 views

Answer: 215,000

The document provides 4 examples of calculating financial metrics like segment margin, variable costs, cash budgets, and cash disbursements. The examples give sales revenues, costs, profit, and cash flow numbers to determine answers like the segment margin of a product line, the variable costs for a sales area, how much money needs to be borrowed for a cash budget, and the estimated cash disbursements for inventories.

Uploaded by

Winoah Hubalde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

1.

Assume the following information for a product line:

Sales revenue                                                                                                             P500,000

Variable manufacturing costs                                                                                     100,000

Direct fixed manufacturing costs                                                                                  75,000

Variable selling/administrative costs                                                                            50,000

Direct fixed selling/admin. costs                                                                                   60,000

What is the segment margin of the product line?

Answer: 215,000

2. Canon Company has two sales areas: North and South. During last year, the contribution margin in
the North Area was P50,000, or 20% of sales. The segment margin in the South was P15,000, or 8% of
sales. Traceable fixed costs are P15,000 in the North and P10,000 in the South. During last year, the
company reported total net income of P26,000.

The variable costs for the South Area for the year were:

Answer: 162,500

3. The following information was extracted from the May Cash Budget of Hair Stars, a groom pad for
men and women:

Budget of Hair Stars, a groom pad for men and women:  

Excess of cash available over disbursements P     800

Cash balance, May 1 10,100

Total cash disbursement for May 32,500

The business can only borrow money in round figures of P1,000 amounts.  If the business is required to
maintain a minimum cash balance of P10,000, how much money should be borrowed in May?

Answer: 10,000

4. The January 2020 budget of Balagtas Company is being prepared by the budget officer of the
company.  In the preparation of the cash budget the estimates for the month of January 2020 include
the following:

Sales P937,500

Gross profit (based on sales) 25%

Increase in inventories P75,000

Decrease in trade accounts payable P30,000


The estimated cash disbursements for inventories in January 2020 is:

Answer: 808,125

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy