Hafiz & Muiz Brothers (H&M Bros.) started a foodtruck business a year ago. It sells various beverages and healthy fast foods at Greenwood Foodtruck Park every evening, Now H&M Bros, plans to set up a hipster beverage outlet at Ara Damansara as part of its expansion plan in May 2017. They thought the time is good as June and July are peak months for Muslims celebrating Ramadhan and Syawwal respectively. However, capital is a constraint to them and thus they are looking for soft financing from family members. In order to convince the family members especially their accountant-parents, they plan to prepare a proper operation budgets for the first three months of its operation (ie May, June and July 2017). H&M Bros. are very optimistic with the new outlet which will focus on selling its signature beverage. H&F Coffee Plus, and thus has come up with the following sales figures: May 3,500 cups June 4,800 cups July 4,200 cups August 3,000 cups September 3,000 cups The selling price of H&F Coffee Plus is set at RM12 per cup and sales are all in cash. H&M Bros. also plans to prepare chilled H&F Coffee Plus and keep in fridges to meet demands of customers at all times. The outlet will have to keep chilled H&F Coffee Plus of at least 5% of the following month's sales. As the operation of the outlet starts in May 2017, there is no opening inventory for the month. With good business records for a year, H&M Bros. managed to negotiate credit terms from the supplier of the main raw material, liquid X, with 70% of the purchase to be paid in cash while 30% in the following month of purchase. The followings are the detail information of liquid X: Quantity required per cup 0.2 litre Price per litre of liquid X Inventory requirement 10% of the following months required production requirement (Note: No opening inventory for the month of May as the outlet starts its operation in the month) RM20 3 H&M Bros really puts emphasis on efficient delivery to customers and expects each cup H&F Coffee Plus to be prepared within 5 minutes and each of outlet workers will be paid RM10 per hour One of the partners, Hafiz, seeks your help, a courtesy as a college friend, to guide him preparing several important elements of operation budgets for H&M Bros. Required: 1. Prepare the following budgets for the months of May, June and July 2017, and in total: Sales budget: b. Production budget c. Raw material purchase budget, and d. Direct Labour budget (16 marks) 2. Prepare the Schedule of Cash Disbursement for the purchase of raw material (Liquid X) for the months of May, June and July 2017, and the total cash disbursements for the three months. (4 marks) 3. Briefly explain the importance of budgets in business operations to H&M Bros (including 4 the Islamic perspectives)