Maveles Company wants to prepare a cash budget for months of January through April 2021. Using the following information, prepare the cash budget schedule and interpret the results.

Additional information: Sales were RM50,000 in October, RM60,000 in November and RM65,000 in December 2020. Sales have been forecasted to be RM72,000, RM63,000, RM59,000, and RM56,000 for months of January, February, March and April 2021 respectively. In the past, 10 percent of sales were on cash basis, and the collection were 50 percent in the first month, 30 percent in the second month, and 10 percent in the third month following. Every four months (three times a year) RM500 of dividends from investments are expected. The first dividend payment was received in January. Purchases are 60 percent of sales, 15 percent of which are paid in cash, 65 percent are paid one month later, and the rest is paid two months after purchase. A total of RM8,000 annual dividends are paid twice a year (in January and July). The monthly rent is RM2,000. Taxes are RM6,500 payable in April. A new machine will be purchased in February for RM2,300. RM1,500 interest will be paid in March. RM1,000 loan payments are paid every month. Wages and salaries are RM1,000 plus 5 percent of sales in each month. December's ending cash balance is RM3,000. Maveles would like to maintain a minimum cash balance of RM10,000.