EXERCISE CHAPTER 10 1. Storm Construction's projected sales for the 7 months of 2020 as follows: Prepare a cash budget for the month April, May and June. RM January February March April RM 180,000 360,000 540,000 720,000 May June July 360,000 360,000 90,000 i. The company collects 30% of its sales in the month of sales. The balances are equally in the 2 months following the sales. ii. Purchases of raw materials are 60% of sales and are made one month before the sales. iii. Payments for purchases are made in the month of sales. iv. Fixed monthly expenses are: (a) Rent RM38,000 (b) Utilities RM100,000 (c) Depreciation RM12,000 V. Ending cash balance at March 2003 was RM96,000 vi. Minimum cash balance of RM60,000 must be maintained at all times and all short-term borrowings cost 15% per annum