BlackPink Berhad, a SME in F&B, budgets their business in 2021 as follows: OPERATING BUDGET 1. Expected sales volume: 3,000 units for Q1 with 500-units increase in each succeeding Qs SP @ $60/unit 2. Able to meet sales needs with FG ending inventory of 20% of next quarter sales. 3. Would like to maintain RM inventory at 10% of next quarter production requirements. 4. Each unit would require: 5 oz. of material @ $3/oz. 5. Desired ending for DM in the last Q4 is 5,400 oz. 6. Two (2) hours of DL required to produce each unit @ $10/hour rate. 7. Expects the following variable MOH costs to fluctuate on production volume based on DLH: Indirect materials $1 Utilities $0.40 Indirect labour $1.40 Maintenance $0.20 8. Fixed MOH: Supervisory salaries $20,000 Property Taxes & Insurance $9,000 Depreciation $3,800 Maintenance $5,700 9. Variable S&A expense on sales revenue are as follow: Commissions 1.00% Freight-out 0.50% 10. Fixed S&A: Advertising $5,000 Depreciation $1,000 Sales salaries $15,000 Property Taxes & Insurance $1,500 Office salaries $7,500 10. Interest expense is based on its loan repayment at 2%. 11. Income tax are exempted due to the pandemic. FINANCIAL BUDGET 1. Expected cash balance on Q1 is $150,000. Wish to maintain balance at least $20,000. 2. Sales collection: 60% collected in the Q sold 40% collected in the following month 3. A/C Receivable from Q4 in 2020 of $48,000 is expected to be collected in Q1 of 2021. 4. ST investment are expected to be sold for $2,000 cash in Q1 and $5,000 cash in Q4. 5. DM purchases: 50% paid in the Q purchased 50% paid in the following month 6. A/C Payable of $20,125 from the previous Q4 of 2020 is expected to be paid in Q1 of 2021. 7. DL payment: 100% expected to be paid in Q incurred 8. MOH and S&A: all items except depreciation paid in Q incurred 9. Plan to purchase a second-hand truck in Q2 for $5,000 cash. 10. Estimated annual income taxes expected to be paid in equal quarterly payments. 11. Loans are repaid in earliest Q with sufficient cash. Required: Prepare the following budgets for BlackPink Berhad: (ix) Cash Budget