Lemon Yellow Berhad projected sales for the second half of 2020 are given below:

July RM1,500,000 Oct RM1,800,000

Aug RM1,600,000 Nov RM1,900,000

Sept RM1,700,000 Dec RM1,800,000

70% of sales are collected in the month of the sale, 25% are collected in the month following the sale, and 5% are written off as uncollectible. Cost of goods sold is 40% of sales. Purchases are made the month prior to the sales and are paid during the month the purchases are made (for example, goods sold in July are bought and paid for in June).

Total other cash expenses are RM120,000/month. The companys cash balance as of Oct 1, 2020 will be RM600,000. Excess cash will be used to retire short-term borrowing (if any). Lemon Yellow Berhad has no short-term borrowing as of 30 September 2020.

Assume that the interest rate on short-term borrowing is 1% per month. The company must have a minimum cash balance of RM100,000 at the beginning of each month. Round all answers to the nearest RM100.

Required:

Based on the information given, prepare the cash budget for the fourth quarter of 2020 for Lemon Yellow Berhad.