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a) The actual sales and purchases for Selvi Furniture Company for February and March 2021, along with its forecast sales and purchases for the period
a) The actual sales and purchases for Selvi Furniture Company for February and March 2021, along with its forecast sales and purchases for the period April until July 2021 are as follows: Year Month Sales (RM'000) Purchases (RM'000) 2021 February 170 140 March 160 100 April 140 80 May 180 110 June 200 100 July 250 90 The firm makes 20% of all sales for cash and collects on 40% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be RM12,000 in February and July, RM15,000 in April and June, and RM27,000 in May. The firm pays cash for 10% of its purchases. It pays for 50% of its purchases in the following month and 40% of its purchases 2 months later. Wages and salaries amount to 20% of the preceding month's sales. Rent of RM20,000 per month must be paid. Interest payments of RM10,000 are due in April and July. A principal payment of RM30,000 is also due in July. The firm expects to pay cash dividends of RM20,000 in April and July. Taxes of RM80,000 are due in July The company's cash balance as of February 2021 was RM14,000 and a minimum cash balance of RM15,000 must be maintained at all times. You are required to prepare a cash budget for the months of April, May, June and July 2021. (16 marks) b) List the four (4) goals of a firm. (4 marks) Page 314 +
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