(a) The table below provides a firms projected sales for the year 2021. About 40% of a months sales is collected in the same month whereas the remainder is collected in the next month. Purchases are 85% of sales, and are made a month before the sales month. The firms average payment period (APP) is 21 days. Assume there are 30 days in a month.

	MARCH 2021	APRIL 2021	MAY 2021
SALE (RM)	51000	39000	42000

(i) What is the total amount of sales collection in April 2021? (2 marks)

(ii) What is the total amount of purchase disbursement in April 2021? (3.5 marks)

(b) If the firms short-term investment (bank deposit) at the end of March 2021 is RM2,000. The interest on the deposit is 3.6% per year, compounded monthly. The net cash flow (not including short-term deposit interest) for April 2021 is projected to be an outflow of RM5,000. The starting cash balance for April 2021 is estimated to be RM4,000, which is also the maximum cash balance.

(i) What is the amount of interest on the short-term deposit that will be gained in April 2021? (1.5 marks)

(ii) What is the amount of short-term deposit that would be liquidated in April 2021, and what is the estimated ending cash balance for that month? (3 marks)