Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hulubalang Bhd intends to commence trading on 1 June and can place RM 950,500 into the business bank account on that date. The business plan

Hulubalang Bhd intends to commence trading on 1 June and can place RM 950,500 into the business bank account on that date.

The business plan shows the following estimates:

  1. Cash expenditure in June on premises RM 800,000, plant RM 150,000 and fixtures and furniture RM 50,000. These assets are to be written off over 10 years on a straight line basis.

  1. Inventory of material will be held at a level of RM 40,000. Suppliers have already agreed to allow one months credit for purchase of materials.

  1. The sales budget shows:

June RM 60,000; July RM 105,000; August RM 144,000; September and thereafter RM 210,000 per month. It is expected that 20% of sales will be for cash and the remainder on terms of two months credit. The material costs are 2/3 of sales.

  1. Other budgeted cash payments are:

JuneJulyThereafter RMRMRMWages6,00012,00020,000Expenses7,00015,00022,500Salaries3,0003,0003,000

Required

Prepare a cash budget for the months of June, July and August

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Audit Transformation And Beyond

Authors: Toby DeRoche

1st Edition

1032062894, 978-1032062891

More Books

Students also viewed these Accounting questions

Question

Which of the following are true for ROM? ( select all that apply )

Answered: 1 week ago