CHAPTER THREE Financial Forecasting and Planning 102 September 2015: Section A. Question 2 a) 20% of sales are for cash, another 40% is collected in the month following sales, and 40% is collected in the second month following sales. b) JMD Berhad purchases of raw materials equaling to 50% of sales and is made two months in advance of sales. The supplier is paid one month after the purchase c) Furthermore, the company pays RM4,000 per month for rent, and RM12,000 per month for other expenditures. d) Alowance for a staff on September is RM500. This amount will be increase 20 percent by the following month. e) Dividend of RM50,000 will be recelved in December, interest of short term loan of RM2,000 Will be paid starting in November. f). Tax deposits of RMB0,000 are made each quarter, beginning in October. g) Purchase of new equipment for new operating factory amounting to RM400,000 in November and December. h) The company's cash balance on September 30 was RM12,000 and a minimum balance of RM50,000 and an increase up to RM120,000 starting in November. i) Any short term financing needed to maintain the minimum cash balance should be paid off in the month after the financing month with an annual interest rate of 10% per annum. Prepare a cash budget for JMD Berhad for the fourth quarter of 2015. CHAPTER THREE Financial Forecasting and Planning 102 September 2015: Section A. Question 2 a) 20% of sales are for cash, another 40% is collected in the month following sales, and 40% is collected in the second month following sales. b) JMD Berhad purchases of raw materials equaling to 50% of sales and is made two months in advance of sales. The supplier is paid one month after the purchase c) Furthermore, the company pays RM4,000 per month for rent, and RM12,000 per month for other expenditures. d) Alowance for a staff on September is RM500. This amount will be increase 20 percent by the following month. e) Dividend of RM50,000 will be recelved in December, interest of short term loan of RM2,000 Will be paid starting in November. f). Tax deposits of RMB0,000 are made each quarter, beginning in October. g) Purchase of new equipment for new operating factory amounting to RM400,000 in November and December. h) The company's cash balance on September 30 was RM12,000 and a minimum balance of RM50,000 and an increase up to RM120,000 starting in November. i) Any short term financing needed to maintain the minimum cash balance should be paid off in the month after the financing month with an annual interest rate of 10% per annum. Prepare a cash budget for JMD Berhad for the fourth quarter of 2015