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Agapanthus Berhad projected sales and purchases for the month of October to December 2018 as below: 2018 September Purchases (RM) Sales (RM) 12,000 17,000

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Agapanthus Berhad projected sales and purchases for the month of October to December 2018 as below: 2018 September Purchases (RM) Sales (RM) 12,000 17,000 October 14,000 22,000 November 13,000 18,000 December 14,000 14,000 Wages of RM1,500 are paid in the month that they are incurred. Overhead expenses of RM1,200 are due each month and these are paid one month in arrears. On 1 November 2018, the company plan to buy a second-hand van for RM8,000. Sales are all on credit and the company policy is to allow a 30 days credit period. Half of the purchases are on credit and the length of credit period allowed is a month. The other half of the purchases are for immediate settlement. The balance at the bank as at 1 October 2018 is RM15,000. Required: Produce a cash budget for the 3-month period ending 31 December 2018. (10 Marks)

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