B - PROBLEM QUESTIONS Instruction: Please write your answers clearly. QUESTION 1 Alya Irdeena provides services in the retail flooring industry. The following information is available for 2021: Twenty percent of the firm's service revenue are for cash and the remaining 80% are on account. Of the credit services, 40% are collected in the month that the service is provided, with the remaining 60% collected in the following month. Services provided in January are expected to total RM250,000 and grow at the rate of 5% per month thereafter. January's cash collections are expected to be RM240,400, and month-end receivables are forecasted at RM120,000. Monthly cash operating costs and depreciation during the first quarter of the year are approximated at RM250,000 and RM15,000, respectively. Alya's December 31, 2020 statement of financial position revealed accounts payable balances of RM28,000. This amount is related to the company's operating costs and is expected to grow to RM36,000 by the end of 2021's first quarter. All operating costs are paid within 30 days of incurrence. Company policy requires that a RM20,000 minimum cash balance be maintained, and Alya's 2020 year-end statement of financial position showed that the firm was in compliance with policy by having cash of RM23,090. Required: a. Determine the service revenue earned that will appear on the statement of profit or loss for the quarter ended March 31, 2021. (3 marks) b. Compute the company's total cash collections for the quarter ended March 31, 2020. 6 marks) c. Compute the cash balance that would appear on the company's statement of financial position as at March 31, 2021. (6 marks) d. What are some possible actions the company could pursue if, at any time during the quarter, it finds that the cash balance has fallen below the stated minimum? (4 marks) e. Islam promotes proper planning in doing business. Discuss the importance of budgeting and identify FIVE (5) purposes of budgeting systems (include an Islamic perspective in your answer). (6 marks) [TOTAL: 25 MARKS] 7