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# Glenda Company expects to generate P10 million internally which could be available for

financing part of its P12 million capital budget for this coming year. Glendas
management believes that a debt-equity ratio of 40 percent is best for the firm. How
much should be paid in dividends if the target debt-equity ratio is to be maintained?
8,571,429 4,000,000 1,428,571 2,800,000

## The following information pertains to Tiffany Company:

Month Sales Purchases
January P30,000 P16,000
February 40,000 20,000
March 50,000 28,000
Cash is collected from customers in the following manner:
Month of sale 30%
Month following the sale 70%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid
the following month.
Labor costs are 20% of sales. Other operating costs are P15,000 per month (including
P4,000 of depreciation). Both of these are paid in the month incurred.
The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required
at the end of the month. Money can be borrowed in multiples of P1,000.
How much cash will be disbursed for labor and operating costs in March?
44,200 48,200 25,000 21,000
SOLUTION:
(March sales P50,000 x 20% = P10,000) + (Cash operating costs P15,000 - P4,000 =
P11,000) = P21,000

Which of the following variables used for industrial marketing segmentation includes
dimensions of the customer's operations, such as what technologies the customer is