Kojima Berhad is trying to estimate its need of funds for the second quarter of year 2009. The company's actual and forecasted sales are as follows:

Actual RM Forecasted RM

January 160,000 April 180,000

February 190,000 May 260,000

March 140,000 June 220,000

July 280,000

b) The collection of sales is as follows:

30% is for cash

70% is collected one month after sales

c) The purchases of the raw materials are 60% of sales and made one month in advance. The payments are made in the same month in which the sales occur.

d) Rent expenses is RM3.000 per month. 6% of interest payment on RM150,000 notes payable is to be paid in May.

f) Wages and salaries in April, May and June are estimated to be RM10,000, RM12.000 and RM14.000 respectively.

g) Other fixed monthly expenses:

Depeciation RM15,000

Insurance RM 3,000

h) The company plans to pay RM10,000 in cash for a new cutting machine in June. This new machine will depreciate RM500 per month.

i) The cost of renovation of RM50,000 will be paid equally in May and June. A quarterly dividend of RM5.000 will be received in June.

k) Kojima Berhad's ending cash balance for March is RM30.000 and a minimum balance the firm wishes to have is RM50.000 per month and the amount will be increased to RM100,000 starting from June.

You are required to prepare a cash budget for Kojima Berhad for the second quarter of year 2009.

(20 marks)