Bagus Industri Bhd. is preparing a cash budget for the second quarter of 2008. The following are its sales figures:

ACTUAL SALES (RM) YEAR 2008 FORECASTED SALES (RM) YEAR 2008

January 160,000 April 225,000

February 140,000 May 250,000

March 190,000 June 210,000

July 220,000

a) The company collects 30 percent of its sales in the month of the sale, 30 percent in the month following the sale, and the remaining 40 percent two months following the sale.

b) Purchases of raw material are 75 percent of the month sales and are made one month in advance of the expected sale.

c) Payments for purchases are made in the month of sales.

d) A new machine will be installed and paid in May. The price is RM30.000

e) Insurance payments of RM10,000 are made at the end of each quarter.

f) Fixed monthly expenses are:

Rent - RM12,000

Utilities - RM20.000

Depreciation - RM 7,500

g) Tax payments of RM26.500 are made at the beginning of each quarter.

h) Dividends of RM30.000 will be received in May.

i) Ending cash balance for March is RM38.500.Minimum cash balance of RM25.000 must be maintained at all times.

From the information provided above, prepare a cash budget for the second quarter. ( 20 Mark)