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b) Caron Sdo Bhd has provided the following estimates relating to the first quarter (1 January to 31 March) of 2019: RM Cash sales 46,000

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b) Caron Sdo Bhd has provided the following estimates relating to the first quarter (1 January to 31 March) of 2019: RM Cash sales 46,000 Credit sales 92,400 Receipts from accounts receivable 71,500 Cash payments: Wages 54,000 Office furniture 12,600 Utilities expenses 3,800 Administrative expenses 14,100 Depreciation on office furniture 315 Credit purchases 65,600 Payments to accounts payable 52,900 The cash balance at 1 January 2019 was RM11,250. The company has a policy of maintaining a minimum of RM10,000 cash balance at the end of every month. Required: i) Prepare a cash budget for the quarter ending 31 March 2019. (16 marks) ii) Discuss the ways Caron can improve its cash flow. (15 marks)

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