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Mat Shidi Sdn. Bhd. estimates its financing needs for 2020. The company's sales and forecasts are as follows: Month Dec Jan Feb Mar Sales (RM)
Mat Shidi Sdn. Bhd. estimates its financing needs for 2020. The company's sales and forecasts are as follows: Month Dec Jan Feb Mar Sales (RM) 80,000 70,000 95,000 40.000 Month Apr Mei Jun Jul Sales (RM) 70,000 50,000 5,000 70.000 In addition, other information regarding its financing projection is as follows: i) 30 percent of the company's sales revenue is collected during the month of sale, 65 percent is collected one month after the sale and the remainder is uncollected. ii) Purchase of stock made one month before sale. Raw material purchases make up 70 percent of sales. Supplier is paid one month after purchase. iii) Operating expenses are 10 percent of the monthly sales. Other fixed monthly expenses for rent, salary and depreciation were RM1,300, RM2,000 and RM1,600 respectively. iv) A tax deposit of RM1,500 was made in January. v) An investment dividend of RM3,000 will be received at the end of March. vi) The cash balance as at 31 December 2019 is RM7,000 and the minimum balance of RM3,000 must be maintained at all times. Based on the above information, prepare a cash budget for the three months ending March 31, 2020
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