11 fx M " Me Chan in propioing to start he own boss, commencing on to Jary 2622, owing redundancy My Chan has made the blowing estimates in order to eats he leadly paction over the months of trading This is for the purpose of obtaining a short ten bank loan or other means of her funding the business start fant " (1) The beniness will commence with RM50,000 in the bank, made up of Mr Chan's savings totaling 30 000 puna inan that w Half of the loan is to be repaid on 30th July 2022. be taken the bank of FM 20,000 repai 10 Mr. Chan is also buying property requiring a deposit of RM20,000 to be paid on 1st January followed by monthly repayment of M 2,500 commencing in February " 12 (2) Equipment and a motor van will be purchased, to be paid in January, for RM30,000 and FM10,000 respectively 13 (3) Purchases of raw materials on credit, paid for one month after purchase will be D 15 16 January 17 RM40,000 February 15.000 March RM20.000 Apr May RM30,000 RM25,000 June RM20.000 July RM35,000 18 19 (4) Sales, in units are forecast to be 20 T January February March April May June 3,000 4,000 5,000 3,000 6,000 7,000 D 40% of the units sold each month will have a selling price of RM9 per unit, paid for in the month after sale. The remaining units (60%) will be sold for RM10 per unit, paid for 2 months after sale (5) Five staff will be employed, from 1st January, each paid RM1,000 per month gross on the last day of each month Mr. Chan will withdraw RM2,000 per month for his own ving expences J11 fx N123- Default (Ar- 10 BIGA ----- 29 28 (5) Five staff will be employed, from 1st January, each paid HM1,000 per month gross on the last day of each month M Chan will withdraw 10M2,000 per month bingexpe 27 20 (6) Inventory of other materials costing RM4,000 will be purchased in January, payable one month later inventory expected to cost M2 000 per month commencing w with payment one month later 30 21 (7) Advertising will be RM3,000 per month from January to March, fotowed by advertning of FM5,000 per month from Apri, paid for in the month incumed 32 33 (8) Interest on the loan is 1% per month, payable on the 15m of each month commencing in January 2022 -34 35 Required 30 37 (a) Prepare a monthly cash budget for the period January to June 2022. (8 marks) 38 (b) Advice Mr. Chan what, if any, additional funding is indicated by the cash budget and what action you would recommend him taking. (2 m 30 40 41 42 43 24 45 46 17 B 2 T-2