Alice owns a toys factory. Since trading over the past few year has been successful, he feels it is time to request an increase in the overdraft facility. In order to support the request to increase facility, he had produced a forecasted Income Statement for the four months ended at $30$ June $2015$ as below:

$\backslash$table$[[,$March,April,May,June$],[,\backslash$table$[[$RM$],[000]],\backslash$table$[[$RM$],[000]],,\backslash$table$[[$RM$],[000]],\backslash$table$[[$RM$],[000^(\text{'})]],\backslash$table$[[$RM$],[000]],\backslash$table$[[$RM$],[000]],\backslash$table$[[$RM$],[000^(\text{'})]],\backslash$table$[[$RM$],[000]]],[\backslash$table$[[$Sales$],[$Cost of sales$]],,\backslash$table$[[80],[42]],,\backslash$table$[[38],[20]],,\backslash$table$[[110],[80]],,\backslash$table$[[180],[100]]],[\backslash$table$[[$Gross Profit$],[$Less:$]],,38,,18,,30,,80],[$Rental$,5,,5,,5,,5,],[$Salary$,5,,4,,7,,8,],[$Electricity$,3,,2,,4,,6,],[$Depreciation$,6,(19),6,(17),6,(22),6,(25)],[$Net profit,,$19,,1,,8,,55]]$

Additional Information:

$,$ On $11^{st}$ March $2015,$ overdraft bank stand at RM $2,000.$

$,$ Salary are payable in the month in which they are incurred.

Electricity incurred will be payable on the following month. February electricity was RM $2,000.$

$,$ Purchases for the period are expected as below:

$\backslash$table$[[$Month$,$March,April,May,June$],[$Purchases$,$RM $30,000,$RM $80,000,$RM $100,000,$RM $50,000]]$

Purchases will be high in April and May because they will subject to a special discount of $5\%$ of the amounts quoted.

Rental is paid quarterly in advance on the first day of March, June, September and December every year.

$70\%$ of the sales are on credit basis payable two months later. Sales in January and February were RM $50,000$ and RM $70,000$ respectively.

Required:

$($i$)$ Prepare a forecasted cash budget on a month by month basis for the period of March to June $2015.$

$($ii$)$ Discuss FOUR $(4)$ advantages of cash budgeting.