Part 1

Projected sales revenue for PeeKayPee Sdn. Bhd. for the first eight months of 2021 are as follows:

Month	Sales (RM)
Januari	85,000
Februari	125,000
Mac	115,000
April	235,000
Mei	295,000
Jun	265,000
Julai	215,000
Ogos	115,000

From total monthly sales revenue, 10% is made up of cash sales. 50% of the total monthly sales are collected in the first month after the sale is made while the remaining 40% is collected in the second month after the sale is made. Total sales for November and December 2020 are RM95,000 and 102,000 respectively

PeeKayPee monthly merchandise inventory purchases are scheduled as follows:

Month	Sales (RM)
Januari	72,500
Februari	82,400
Mac	142,300
April	175,000
Mei	163,200
Jun	138,300
Julai	91,800

Payment for the inventory purchase of the merchandise is made in the month in which the purchase is made.

PeeKayPee pays RM9,000 per month for business premises rental expenses and another RM22,000 for various other related expenses. Tax payments amount to RM19,500 and are paid by PeeKayPee on a quarterly basis, starting in March

The final cash balance of PeeKayPee as at 31 December 2020 is RM22,400. The Company has a monetary policy stipulated to maintain a minimum cash balance of RM20,000 at all times. If the minimum cash balance requirement cannot be met, the company can obtain short-term cash financing facilities at a rate of 12% per annum. These interest expenses are paid on a monthly basis.

Some or all of this financing amount will be repaid next month if the company has a cash surplus in that month. Therefore, if the company expects to require additional short-term financing amounting to RM60,500 in February, the loan will be made in early February with interest of RM605 (12% x 1/12 x RM60,500). This interest will be paid in early March.

Based on the information provided, prepare a cash budget for PeeKayPee for the first six months of 2021.

(20 marks)