Arena Maju Corporation has been engaged in the process of forecasting its financing needs over the next quarter and has made the following forecasts of planned cash receipts and disbursements:

The monthly sales for the year of 2021:

RM RM

April 720,000 August 630,000

May 523,000 September 450,000

June 600,000 October 430,000

July 750,000 November 740,000

i) The firm's sales of 40% is collected in the month of sale and the remaining balance will be collected equally in the following two months after sales.

ii) The raw materials are 70% of sales purchased two (2) months before the sales month. The supplier is paid one month after the purchases on the cash payment basis.

iii) The wages and salaries are paid based on 10% of sales in the month. The utility for the firm is 5% of sales in the month of their incurrence.

iv) Furthermore, the monthly rent expenses is RM5,000 and RM3,000 maintenance

v) Beginning cash balance for the budget period is RM180,000 with a minimum cash balance of RM20,000 and an increase to RM30,000 in August and RM60,000 in September.

vi) Any short term financing needed to maintain the minimum cash balance should be paid off the month after the financing month with an annual interest rate of 5% per annum.

Prepare a monthly cash budget for the three-month period ended 30th September.

( 20 marks )