AJU Sdn. Bhd. is a company producing garments products. Below are the companys financial statements:

MAJU Sdn. Bhd
Statement of Comprehensive Income for the year ended 31 August 2021
						RM
	Sales revenue					1,000,000
	Cost of goods sold					(500,000)
	Gross profit					500,000
	Operating Expenses Administration expenses					(50,000)
	Distribution expenses					(150,000)
	Depreciation expense					(20,000)
	Other operating expense					(30,000)
	Profit before interest & tax					250,000
	Interest expense					(20,000)
	Net profit before tax					230,000
	Income tax expense					(60,000)
	Net income					170,000
MAJU Sdn Bhd
Statement of Financial Position as at 31 August 2021
		2020			2021
				RM			RM
Non-current Assets
Net Book Value of Machinery				160,000			140,000
Current Assets
Bank				40,000
Account Receivable				100,000			150,000
Inventory				200,000			350,000
Total Assets				500,000			640,000
Non-current Liabilities
Loan				250,000			330,000
Current Liabilities
Bank Overdraft							20,000
Accounts Payable				20,000			50,000
Operating expenses payable				10,000			20,000
Shareholders Equity
Ordinary share capital				100,000			100,000
Retained earnings				120,000			120,000
Total Liabilities & Equities				500,000			640,000

Required:

(a)

1 Compute the collections from customers. (2 marks)

2 Compute payments for merchandise inventory. (3 marks)

3 Compute payments of operating expenses. (2 marks)

4 Compute the acquisitions of Machinery. (3 marks)

5 Compute the amount of borrowing, with MAJU paying no long-term liabilities. (2 marks)

6 Compute the cash payment for interest expense. (2 marks)

7 Compute the payment of cash dividends. (2 marks)

(b) Using the income statement and balance of MAJU Sdn. Bhd., discuss three possible reasons of Bank Overdraft. And suggest three strategies for MAJU Sdn. Bhd. to improve cash flow position. (Suggestions should be in perspective of MAJU Income statement and Balance sheet.) (9 marks)

[Total: 25 Marks]