LECTURE 9 & LECTURE 10 BAC1044 Dorothy Berhad is in the process of preparing budgets for the period October to December 2020. The following information has been provided to assist in the budgeting process: 1. Sales : Actual - August RM600,000 - September RM650,000 : Forecasted - October RM750,000 - November RM870,000 - December RM1,000,000 Sales are forecasted to be collected 30% in the month of sales, 60% in the following month and another 10% in two month's time. 2. Purchases of inventory are forecasted to be 40% of the monthly sales and paid 40% in the month of purchases and 60% in the following month. 3. Salaries and wages constituted 30% of monthly sales which are paid in the same month, while selling and admin expenses contributed 10% of sales and paid in the following month. 4. Monthly depreciation expense is RM70,000 and fixed interest expenses of RM55,000 per month. 5. An used-printing machine will be bought in September 2020 for RM300,000 which will be paid in five (5) equal installments starting from September 2020. 6. A firm expects to receive RM50,000 from investment in December 2020 and pay accrued taxes of RM40,000 in November 2020. 7. A firm has RM50,000 a cash balance as at September 30, and a policy to maintain RM25,000 as a minimum monthly cash balance. Required: a) Prepare separate schedules for the expected collections from customer and expected payments for purchases. b) Prepare a cash budget for last quarter of 2020 (October to December)