Fancy Star Sdn. Bhd. manufactures various type of women accessories. The Finance Executive is currently busy preparing the companys cash budget for the last quarter of 2020. The following information is available for preparing the quarter cash budget of the company:

QUESTION 1 Fancy Star Sdn. Bhd. manufactures various type of women accessories. The Finance Executive is currently busy preparing the company's cash budget for the last quarter of 2020. The following information is available for preparing the quarter cash budget of the company: 1. Budgeted sales are as follows September 2020 October 2020 November 2020 December 2020 RM500,000 RM760,000 RM680,000 RM800,000 2. 60% of the sales is on cash basis. The balance is credit sales that are collected one month after sales. Budgeted purchases are as follows: September 2020 October 2020 November 2020 December 2020 RM300,000 RM360,000 RM420,000 RM380,000 3. 4. Half of the purchases are paid in the month of purchases and the discounts received from the suppliers are 5%. The remaining balance are paid in the following month of purchases. The fixed overhead incurred every month is expected to be RM15,000. This amount includes RM2,000 for depreciation on the existing fixed assets. These expenses are paid in the month being incurred. One of the old machines will be sold for RM 9,000 cash in the month of October and a new machine will replace in December at a cost of RM 50,000 and payment will be made in two equal installment in December 2020 and January 2021. Fixed salaries amounted RM55,000 are paid every month. However, starting from December 2020, the total payment for salaries have been increased by 15%. The budgeted cash balance at 1st October 2020 is RM 210,000. Dividend on investment is expected to be received in November amounted RM6,500. 5. 5. 7. Required: Prepare a cash budget for the month of October to December 2020. (15 MARKS)