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(b) Wonderland Berhad has the following sales forecasts for the first five months of the coming year: January February March April May RM98.000 RM71.000
(b) Wonderland Berhad has the following sales forecasts for the first five months of the coming year: January February March April May RM98.000 RM71.000 RM95,000 RM82,000 RM99.000 Additional information: (1) (2) (3) (4) (5) (6) (7) 75 per cent of the sales are collected in the month of sales and the balance of 25 per cent of the sales are collected in the month following sales. The receivable balance at the beginning of the year is expected to be RM7.520 and will be collected in full in January. Cost of sales is 45 per cent on sales. 90 per cent of the trade payables are paid in the month of purchase and the balance of 10 per cent of the trade payable are paid in the month following purchase. The payable balance at the beginning of the year is expected to be RM6.990 and will be paid in full in January. Labour costs for each month are estimated as: January RM9.200: February RM5,380 and March RM8,970. Labour costs are paid in the month incurred. Sales commission is 5 per cent on sales and it is paid one month after the sales. The accrued sales commission at beginning of the year is expected to be RM5,100. A new machine costing RM79,000 is to be acquired in January and full payment is to be made at the same month. Other operating expenses (including depreciation of RM3,400 per month) are estimated as January RM10,000, February RM8,200 and March RM9,500. Operating expenses are paid in the month incurred. The cash balance at the beginning of the year is expected to be RM15,300
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