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