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Construct a cash receipt, cash disbursement and cash budget for the four-month period using the data and information provided below.

A. Cash Receipts

Revenues for the first four months of the year are as follows: (Values in Pesos)

Month	Revenues
January	3,000
February	3,000
March	5,000
April	6,000

Of the sales transactions, 25% comprises cash sales, while the other 75% will be collected after one month.

B. Cash Disbursements

Purchases for the first four months of the year are as follows: (Values in Pesos)

Month	Purchases
January	3,000
February	0
March	2,000
April	4,000

Of the purchases, 50% are to be paid in cash, while the other 50% will be paid one month later.

In addition, the following cash expenses are also shown. (Values in Pesos)

Rent	1,000 monthly
Supplies	500 monthly
Labor	1,000 monthly

C. Other Information

1. Ending Cash Balance in December was PhP 5,000.

2. Interest is 1% per month, if applicable.

D. Analysis

1 What could be the possible effect of having sales in credit to your Total Cash Receipts?

2 In purchasing something for the company, what do you prefer? Purchasing thru cash or purchasing thru credit? What do you think will be the effect of this one in your Cash Disbursement?

3 What can they do in order for them to have a good standing in terms of their ending cash balance?

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