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Azmi is a new business analyst with a consulting company specializing in business consultancy. His immediate boss, Mr. Rahim assigned him THREE cases that required
Azmi is a new business analyst with a consulting company specializing in business consultancy. His immediate boss, Mr. Rahim assigned him THREE cases that required him to solve. The cases are as follows: Case 1 WIWI Spring Cosmetic is a manufacturing company located in Shahpadu Industrial Estate, Selangor, Malaysia. The company makes a single cosmetic product, ITAMA. The company has projected sales to be RM900,000 in October, RM964,080 in November, RM1,040,400 in December and RM918,000 in January. The selling price is RM12 per unit and remains constant. WIWI's sales are 25% cash and 75% credit. WIWI's collection history indicates that credit sales are collected as follows: 20% in the month of sale, 70% in the month after the sale, 8% two months after the sale, and 2% never collected. Required: 1. Prepare a sales budget for all four months (units and RM). 2. Prepare a cash collection budget for all four months and total. (4 marks)
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