Mutiara Height

Given the following information for Mutiara Height, you are required to prepare a cash budget covering the second quarter of 2010. a) The Mutiara Height's projected sales for the first eight months are as follows: 10 percent of sales is for cash, another 60 percent is collected in the following month and 30 percent is collected in the second month following sales. b) Mutiara purchases raw materials one month before its sales. Amount of raw materials needed is 60 percent of its total sales. The supplier is fully paid one month after the month of purchase. c) The company pays RM10,000 per month for renting purposes, RM25,000 for salaries and wages and RM20,000 each month for other expenditures. Depreciation is fixed at RM5,000 per month. d) In 2010, the company will make quarterly payment of interest and total interest for the year is RM64,000. Payment will be made at the beginning of each quarter. e) The firm will receive interest from its investment totaling RM66,000 in May. f) The firm's cash balance on 31st March 2010, is RM49,000; a minimum balance of RM15,000 is to be maintained at all times