Ea... 7/8 | - 72% ( Scroja Berhad prepares monthly cash budgets. Relevant data from operating budget for 2021 are: Credit sales Purchases Wages Manufacturing overhead Selling and administrative expenses RM 3,600,000 1.250.000 9900.000 700.000 790,000 August RM 14.000.000 1.300.000 1.000.000 750.000 860.000 September RM 4.500.000 1.400.000 1.200,000 800,000 800.000 All sales are on credit Collections are expected bu 50% in the month of sales, 30% in the first month after the sale, zred 20 an the second month after the sale. Sixty percent of purchases are paid in cash in the month of purchase, and the balanee due is paid the next inonth. All other items are paid in the month incurred. The selling and administrabyer expenses include RM20.000 depreciation per month. Additional information: Expected credit sales: May 2021 RM2.600.000 kuna 2021 RM3,000,000 Expected purchases: June 2021 RM1.000.000, Other expected receipts: o July 2021 Collection of 30 Jun 2021, commission received RM150,000 August 2021 - Proceeds from sale of investment RM60,000. Seroja Berhad's cash balance on July 2021 is expected to be RM426,000 Required: Prepare the following: f) A table for expected collections from customers for July August and September 2021 6 marks) A table for expected payments for purchases for July August and September 2021. (3 marks) A cash budget for July, August and September 2021 013 marks (b) Budgeting can be an important management tool if implemented properly. As budgets affect people, describe THREE (3) negative aspects if budgets are not implemented properly (6 marks) (c) Explain THREE (3) basic assumptions of cost-Volume-profit (CVP) analysis. marks) [Total: 30 marks) Ea... 7/8 | - 72% ( Scroja Berhad prepares monthly cash budgets. Relevant data from operating budget for 2021 are: Credit sales Purchases Wages Manufacturing overhead Selling and administrative expenses RM 3,600,000 1.250.000 9900.000 700.000 790,000 August RM 14.000.000 1.300.000 1.000.000 750.000 860.000 September RM 4.500.000 1.400.000 1.200,000 800,000 800.000 All sales are on credit Collections are expected bu 50% in the month of sales, 30% in the first month after the sale, zred 20 an the second month after the sale. Sixty percent of purchases are paid in cash in the month of purchase, and the balanee due is paid the next inonth. All other items are paid in the month incurred. The selling and administrabyer expenses include RM20.000 depreciation per month. Additional information: Expected credit sales: May 2021 RM2.600.000 kuna 2021 RM3,000,000 Expected purchases: June 2021 RM1.000.000, Other expected receipts: o July 2021 Collection of 30 Jun 2021, commission received RM150,000 August 2021 - Proceeds from sale of investment RM60,000. Seroja Berhad's cash balance on July 2021 is expected to be RM426,000 Required: Prepare the following: f) A table for expected collections from customers for July August and September 2021 6 marks) A table for expected payments for purchases for July August and September 2021. (3 marks) A cash budget for July, August and September 2021 013 marks (b) Budgeting can be an important management tool if implemented properly. As budgets affect people, describe THREE (3) negative aspects if budgets are not implemented properly (6 marks) (c) Explain THREE (3) basic assumptions of cost-Volume-profit (CVP) analysis. marks) [Total: 30 marks)
