Orchid Bhd requires you to assist in the preparation of its cash forecasts for the five (5) years from 2020 to 2024 in the table. The company has provided you with the following informaton: a) Twenty percent (20%) of sales are collected in the year of sale. Fitty percent (50%) of sales will be received one year following the sales and the remaining 30% in the second year following the sales. The total actual sales for the overall months in the year 2018 is RM800, 000 . Meanwhile forecasted sale for the year 2025 is expected to increase by 45% from one (1) year before. b) The company's projected plan is to issue equity about RMM3, 500, 000 in the year 2020 . and 60% of the proceed will be used to retire the long-term debt in the same year. The yearly amount of interest and tax paid in 2021 will be reduced to RMSO,000 and RM140, 000 respectively ahead (constant payment) c) Purchases of raw materials equal 60% of sales and are made one (1) year before anticipated sales. Payments for the purchases are to be as follows: 50% in the year of purchase, 35% one year affer purchase, and 15% two years after purchase. The compeny expected to take up a discount of a 3% offer on the amount of cash purchases made by the company. d) Another cash collection is from 35 units of property rent of RM1200, 000 per year e) Wages outstanding for direct labor at the end of each year (one quarter of a year). expected to pay on early next year onwards. f) Production overheads include depreciation of PM120, 000 per year and are paid in the year they are incurred. g) Five percent (5\%) of sales overheads include sales commission, payable one year in arrears. The remaining sales ovecheads are paid in the year they are incurred. h) Eighty percent (80%) of the administration overheads are paid in the year they are incurred, and the remaining is spent in the following year. i) A yearly dividend of RM250,000 will be received and based on optimistic forecasts: the dividend is expected to growth by 0.6% in the year 2024 . j) The yearly loan interest repayment and tax expenses are RM150, 000 and RM200. 000 respectively. k) Beginning cash balance in the year 2020 is RM108, 000 and the company intends to hold RM30, 000 every year. Orchid Bhd requires you to assist in the preparation of its cash forecasts for the five (5) years from 2020 to 2024 in the table. The company has provided you with the following informaton: a) Twenty percent (20%) of sales are collected in the year of sale. Fitty percent (50%) of sales will be received one year following the sales and the remaining 30% in the second year following the sales. The total actual sales for the overall months in the year 2018 is RM800, 000 . Meanwhile forecasted sale for the year 2025 is expected to increase by 45% from one (1) year before. b) The company's projected plan is to issue equity about RMM3, 500, 000 in the year 2020 . and 60% of the proceed will be used to retire the long-term debt in the same year. The yearly amount of interest and tax paid in 2021 will be reduced to RMSO,000 and RM140, 000 respectively ahead (constant payment) c) Purchases of raw materials equal 60% of sales and are made one (1) year before anticipated sales. Payments for the purchases are to be as follows: 50% in the year of purchase, 35% one year affer purchase, and 15% two years after purchase. The compeny expected to take up a discount of a 3% offer on the amount of cash purchases made by the company. d) Another cash collection is from 35 units of property rent of RM1200, 000 per year e) Wages outstanding for direct labor at the end of each year (one quarter of a year). expected to pay on early next year onwards. f) Production overheads include depreciation of PM120, 000 per year and are paid in the year they are incurred. g) Five percent (5\%) of sales overheads include sales commission, payable one year in arrears. The remaining sales ovecheads are paid in the year they are incurred. h) Eighty percent (80%) of the administration overheads are paid in the year they are incurred, and the remaining is spent in the following year. i) A yearly dividend of RM250,000 will be received and based on optimistic forecasts: the dividend is expected to growth by 0.6% in the year 2024 . j) The yearly loan interest repayment and tax expenses are RM150, 000 and RM200. 000 respectively. k) Beginning cash balance in the year 2020 is RM108, 000 and the company intends to hold RM30, 000 every year
