Aufa Inc., sells home supplies. Management is planning its cash needs for the second quarter The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assists in preparing a cash budget for the quarters a Budgeted monthly absorption costing income statements for April - July are: April May June July Sales RM600,000 RM900,000 RM500,000 RM400.000 Cost of goods sold 420.000 630,000 350,000 280.000 Gross margin 180,000 270,000 150,000 120.000 Selling and administrative expenses: Selling expense 79,000 120,000 62,000 51,000 Administrative expense *** 45,000 52,000 41,000 38,000 Total selling and administrative 124,000 172.000 103,000 89,000 expense Net operating income 56,000 98,000 31,000 *** Include RM20,000 of depreciation each month b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month sale. February's sales totaled RM200,000 and March's sales totaled RM300,000. d. Inventory purchases are paid for April is RM357,000; May RM518,000 and June, RM455,000. f. Dividends of RM49.000 will be declared and paid in April g. Land costing RM16,000 will be purchased for cash in May. h. The cash balance at March 31 is RM52.000. (contoh 57) The company must maintain a cash balance of at least RM40.000 at the end of each month. The company has an agreement with a local bank that allow the company to borrow in increments of RM1,000 at the beginning of each month, up to a total loan balance of RM200,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. REQUIRED: Prepare a schedule of expected cash collections for April, May and June, and for the quarter in total (11 marks) b. Prepare a cash budget for April May and June as well as in total for the quarter. (14 marks)