Question
a) Dudu Berhads projected sales for the first six months of 2021 are given below: 2021 January RM250,000 February RM340,000 March RM280,000 April RM300,000 May
a) Dudu Berhads projected sales for the first six months of 2021 are given below: 2021 January RM250,000 February RM340,000 March RM280,000 April RM300,000 May RM350,000 June RM380,000 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale. Cost of goods sold is 55% of sales. Purchases are made in the month prior to the sales,and payments for purchases are made in the month of the sale. Total other cash expenses are RM70,000/month. The company's cash balance as of February 28th 2021 will be RM10,000. Excess cash will be used to retire short-term borrowing (if any). Dudu has no short-term borrowing as of February 28, 2021. Ignore any interest on short-term borrowing. The company must have a minimum cash balance of RM10,000 at the beginning of each month. What is Dudu Berhads total disbursement in May?
a) Prepare the cash budget for March, April and May 2021. (10 Marks)
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