The following are budgeted data for the Emerald Company, a merchandising company: Budgeted Sales (at retail): January - P300,000; February - P340,000; March - P400,000; April - P350,000. Cost of goods...

The following are budgeted data for the Emerald Company, a merchandising company:

Budgeted Sales (at retail): January - P300,000; February - P340,000; March - P400,000; April -
P350,000. Cost of goods sold as a percentage of sales is 60%. The desired ending inventory is

75% of next month's sales.
Required:
1. Assuming that the company had inventory on hand of P70,000 (at cost) on January 1, how

much must be the purchases for January (at cost)?
2. How much is the desired ending inventory (at cost) for the month of February?
3. Assume that all purchases are paid for in the month following the month of purchase. How

much cash disbursements for purchases would appear in the April cash budget?