d. Cowley Corporation reported sales of RM3,000,000 in August and RM4,500,000 in September. The forecasts for October, November and December sales are RM1,000,000, RM1,500,000 and RM2,000,000 respectively. The initial cash balance on October 1 is RM100,000, and a minimum of RM200,000 should be kept. Use the given information to compile a cash budget for the months of October, November and December and interpret the results. 1. Cowley predicts that 60% of its sales will be cash sales, and the remaining 40% will be collected in the first month following the sales. ii. Cowley are expected to receive RM50,000 interest income from its marketable securities in December. iii. The actual purchases are RM3,500,000 in August and RM2,000,000 in September. While, the expected purchases for October, November and December are RM500,000, RM750,000 and RM1,000,000 respectively. 40% of the purchases are paid in cash, and the remaining 60% are paid in the following month. Wages and salaries are 15% of the preceding month's sales. Sales commissions for workers are 2% of the preceding month's sales. Wi. Monthly lease payments are RM100,000. Long-term loan repayment of principal and interest of RM150,000 are due in December. viii. Cash dividends of RM50,000 are paid by the company to its shareholders at the end of December. Additional assets costing of RM600,000 will be purchased in December. Depreciation expense each month of RM45,000. iv. v. vii. ix. X. d. Cowley Corporation reported sales of RM3,000,000 in August and RM4,500,000 in September. The forecasts for October, November and December sales are RM1,000,000, RM1,500,000 and RM2,000,000 respectively. The initial cash balance on October 1 is RM100,000, and a minimum of RM200,000 should be kept. Use the given information to compile a cash budget for the months of October, November and December and interpret the results. 1. Cowley predicts that 60% of its sales will be cash sales, and the remaining 40% will be collected in the first month following the sales. ii. Cowley are expected to receive RM50,000 interest income from its marketable securities in December. iii. The actual purchases are RM3,500,000 in August and RM2,000,000 in September. While, the expected purchases for October, November and December are RM500,000, RM750,000 and RM1,000,000 respectively. 40% of the purchases are paid in cash, and the remaining 60% are paid in the following month. Wages and salaries are 15% of the preceding month's sales. Sales commissions for workers are 2% of the preceding month's sales. Wi. Monthly lease payments are RM100,000. Long-term loan repayment of principal and interest of RM150,000 are due in December. viii. Cash dividends of RM50,000 are paid by the company to its shareholders at the end of December. Additional assets costing of RM600,000 will be purchased in December. Depreciation expense each month of RM45,000. iv. v. vii. ix. X