FI UNIVERSITY CAWANGAN KELANTAN (FIN420) GROUP ASSIGNMENT SEMESTER MARCH - AUGUST 2022 GROUP D1BA2322C FINANCIAL FORECASTING & PLANNING: CASH BUDGET You are required to prepare a cash budget for the third quarter of 2023 for the company base on the following information; MONTH April May June July August LOGEMARA T September October November a) The collections of sales are as follows: SALES (RM) 70 000 75 000 80.000 90 000 100 000 95 000 120 000 110 000 i. 50 percent is collected in the month of sales ii. 30 percent is collected one month after the sales ii. 15 percent is collected two months after the sales iv. 5 percent is uncollected b) Purchase of raw materials are 70 percent of sales and are made two months prior to sales. Payment are as follows: e) Other fixed monthly expenses; 1. Insurance RM2 000 i. Depreciation RM30 000 1. 50 percent cash ii. 25 percent is paid one month after the purchase ii 25 percent is paid two months after the purchase c) Annual tax of RM10 000 is divided into 4 equal payments and is paid at the end of each quarter. d) Operating expenses will be 10 percent of monthly sales. RH/21062022 iii. Rental iv. Salary 1) A quarterly dividend of RM9 000 will be received at the end of each quarter. g) The firm bought a new machine for RM120 000 in January and payment for the machine is to be made into 12 equal monthly payments starting from February onwards. RM6 000 RM20 000 h) Ending cash balance on June is RM185 000 and the minimum cash balance of RM30 000 must be maintain at all times. i) The cost of short-term borrowing is 9 percent per annum and interest is to be paid monthly. RH/21062022