Melbert sales for the month of October December 2022 are as follows:

Oct RM 3,000,000

Nov 2,500,000

Dec 2,800,000

The company anticipates that sales will pick up again in January 2023 by 20% of the previous months sales and the trend continues until March, then it declines by 10% in the second quarter of 2023. The companys cash sales are 20% of the months sales, and the credit sales collection is made in the following month (50%), two months after (30%), and the balance of 19% is 3 months after. The remaining sales are deemed to be uncollected.

Prepare projected cash inflows for the first quarter of 2023.

Melbert produces its products two months in advance of anticipated sales and ships to warehouse centre the month before sale. The inventory safety stock is 2% of the anticipated months sale. Beginning inventory is 3% of units sold. Each unit costs RM2.00 to make. The average sales price per unit is RM6.00. The cost is made up of 30% labour, 65% materials, and 5% shipping (to the warehouse). The company pays for labour in the month of production, shipping the month after production, and raw materials the month prior to production.

The companys other cash outflows from operation are as follows:

Salary	RM500,000 in 2022. To increase by 5% in 2023.
Utilities	5% of monthly production cost.
Other operational cost	5% of monthly sales.

Determine the cost of production and the anticipated cash outflows for the first quarter of 2023.

As part of the companys cash management policy, a cash reserve of 2% must be always kept. MBB rates of financing on deficit is 4.38% p.a. and on deposit is 3.33% p.a.

Assess the companys cashflow position in the first quarter of 2023.

** please prepare in excel **