The Karen Corporation was organized on January 15, 2018 and started operation soon thereafter

The Karen Corporation was organized on January 15, 2018 and started operation soon thereafter. The Company cashier who acted also as the bookkeeper had kept the accounting records very haphazardly. The manager suspects him of defalcation and engaged you to audit his account to find out the extent of the fraud, if there is any.

On November 15, when you started the examination of the accounts, you find the cash on hand to be P25,700. From inquiry at the bank it was ascertained that the balance of the Company's bank deposit in current account on the same date was P131,640. Verification revealed that the check issued for P9,260 is not yet paid by the bank. The corporation sells at 40% above cost.

Your examination of the available records disclosed the following information:

• Share capital issued at par for cash - P1,600,000
• Real state purchased and paid in full - 1,000,000
• Mortgage liability secured by real state - 400,000
• Furniture and fixtures (gross) bought on which there is

still balance unpaid of P30,000 - 145,000

• Outstanding notes due to bank - 160,000
• Total amount owed to creditors on open account - 231,420
• Total sales - 1,615,040
• Total amount still due from customers - 426,900
• Inventory of merchandise on November 15 at cost - 469,600
• Expenses paid excluding purchases - 303,780

QUESTIONS:

Based on the above and the result of your audit, compute for the following as of November 15, 2018:

1. Collections from sales
2. Payments for purchases
3. Total cash disbursements
4. Unadjusted cash balance
5. Cash shortage