Hershels Chocolate Company produces chocolate bars. The companys quarterly sales and direct materials purchases are projected to be as follows:

	Suku Pertama/ First Quarter	Suku Kedua/ Second Quarter	Suku Ketiga/ Third Quarter	Suku Keempat/ Fourth Quarter
Jualan/Sales	RM2,000,000	RM2,100,000	RM2,200,000	RM2,425,000
Belian bahan langsung/ Direct Materials Purchases	RM1,215,000	RM1,276,125	RM1,349,400	RM1,417,575

All sales are made on credit. The company expects to collect 60% of sales in the quarter of sale and 40% in the quarter following the sale. Accounts receivable at the end of last year totaled RM770,000, all of which will be collected during the first quarter of this coming year.

All direct materials purchases are on credit. The company expects to pay 80% of purchases in the quarter of purchase and 20% in the following quarter. Accounts payable at the end of last year totaled RM275,000, all of which will be paid during the first quarter of this coming year.

Dikehendaki/Required:

1.

Prepare a budget for cash collections from sales.

(4 markah/marks)

2.

Prepare a budget for cash payments for purchases of direct materials.

(4 markah/marks)

3.

How will the treasurer use this information?

(2 markah/marks)

(Jumlah/Total: 10 markah/marks)