Jackell Berhad, owner of a textile company, is planning to request a line of credit from the bank and is in the process of preparing the cash budget. Given the following information, construct the cash budget for the third quarter of 2018. Estimated Sales (2018) July RM 200000 August RM 250000 September RM 150000 October RM 170000 Actual Sales (2018) April May June RM 120000 RM 150000 RM 160000 Operating expenses (RM) July August September Depreciation 2000 2000 2000 Rental 1700 1700 1700 Interest 8% of RM 250000 20000 Salaries and wages 26000 26000 30000 1. Sales are 60 percent credit and 40 percent cash. 2. Collection on credit sales are as follows: - Collections within the first month after sales, 60 percent. - Collections within the second month after sales, 30 percent. - Collections within the third month after sales, 10 percent 3. Wages and rent are paid in the month incurred. 4. Interest on long-term debt is paid quarterly. 5. The ending cash balance for June 2018 is RM50000 and Jackell Berhad has agreed to maintain compensating balance of RM10000 every month. 6. A new equipment is to be purchased in September for RM 20000. 7. Raw material which are purchased one month in advance of sales are paid for in the month purchased. Purchases are 70 percent of sales. 3 Prepare a cash budged for the third quarter of 2018. 120 marks)