Cash Budget Qn

QUESTION: 2 Bio Allergy Company wants to forecast cash receipts from sales and also cash disbursements for the first quarter of 2017. Below is the relevant information for the company. Actual sales in November and December 2016 and projected sales for January through April 2017 are given below: Month Sales (RM) November 2016 300,000 December 2016 400,000 January 2017 600,000 February 2017 700,000 March 2017 800,000 April 2017 900,000 The company collects 40 percent of its sales in the month of sales and the balance are paid equally in the following two months. Purchases are made one month prior to sales and purchases are 80 percent of sales and payments for purchases are as follows: 60 percent in the month of purchase 20 percent one month after purchase 20 percent two months after purchase The following monthly expenses will be incurred in 2017: Salary RM40,000 Rent RM5,000 . . Utilities RM10,000 Interest on loan RM1,000 Depreciation on fixed assets RM4,000 At the end of March 2017 company plans to purchase an equipment worth RM70,000 from Metal Ware Company. Company also expects to receive RM60,000 common stock dividend at the beginning of every quarter. Ending cash balance in December 2016 was RM100,000 and the company maintains a minimum cash balance of RM20,000 every month. Prepare the firm's cash budget for the first quarter of 2017