Corona2020, a merchandising firm, needs to prepare budgets for July 2020. The followings are the data regarding the company's plans for 2020.

1. The actual and forecasted sales (in units) of the company are as follows:

June July August 55,000 70,000 75,000

The unit-selling price is estimated at RM14.50. All sales are on account; 60% of the monthly sales is expected to be collected in the month of sales, and another 40% will be received in the following month after the sales.

2. The company's policy indicates that the ending inventory of merchandises should be equal to 15% of the current month's sales plus 5% of the following month's sales.

3. The cost of goods sold is about 65% of the total monthly sales.

4. The company pays 60% of the purchase in cash, and the balance is paid in the following month after the purchases. Total cost of merchandises purchased in June was RM594,500.

5. In July 2020, the company expects to purchase a piece of commercial land costing RM80,000.

6. Monthly administrative expenses of the company are RM35,000. Selling expenses are estimated at 4% of the cost of sales.These selling and administrative expenses are paid in the month incurred.

7. The closing cash balance in June was RM45,000.

REQUIRED:

(a) Prepare the Cash Budget for the month of July 2020. (Show workings)

(10 marks)