2.

Charlene's Famous Cookies makes fruit, nut and oats cookies. The cookies are sold to leading cafe chains in the country. The actual sales and purchases for the second quarter of 2020 and the budgeted sales, purchases and expenses for the third quarter of 2020 are listed in the table below.

You have been tasked by Ms Charlene to prepare the cash budget for the third quarter of 2020.

Additional information:

1. The budgeted opening cash balance as at 1 January 2020 is RM96,750.
2. All sales are on credit.

Based on past experience, the expected pattern of cash collection from sales on account is50%during the month of sale and50%in the following month.

1. Purchases of inventory are on credit.

Thepurchases are expected to befullypaidin thefollowingmonth.

1. Payment for all the other expenses will be in the same month.
2. In September 2020, Ms Charlene budgeted for the purchase a new oven at a projected cost ofRM105,000. An existing oven will be traded-in for the new oven.

The proceeds from the sale of the old oven, estimated atRM45,000, will be collected in the same month.

1. Charlene's Famous Cookies maintains a minimum cash balance ofRM60,000. Assume that any shortfall in the cash balance will be met through an overdraft facility that the company has with its banker.

Required:

1. Schedule of Expected Cash Collection from Customers, July-September 2020.

(3 marks)

2. Cash Budget by month and in total for the first quarter ending March 2020.

(17marks)