FINANCIAL PLANNING \& FORECASTING Question 6 The following information shows the expected sales and cash disbursements for Delicious Sea Products for November and December 2009 and the first quarter of 2010. 98 Financial Management for Beginners Additional Information: 1. The company expects to collect 60% of their sales in the month of sale, 20% in the first month after the sale and 20% in the second month after the sale. 2. The company usually pays for 70% of their materials purchases in the month of purchase and the remaining 30% in the following month. 3. The company has decided to maintain a minimum cash balance of RM20,000. The company has an open line of credit available from a local bank which charges an interest rate of 7.5% per year, Cash on hand at 1 January 2010 is RM25,000 and there are no loans. Required: a. Prepare a schedule of expected cash collections from sales for the first quarter of 2010. b. Prepare a schedule of expected cash disbursements for purchases for the first quarter of 2010. c. Prepare a cash budget for the first quarter of 2010