PART B: ANSWER THREE 3) QUESTIONS ONLY. SHOW ALL YOUR WORKINGS QUESTION 1 Glitering Glass (GG) will set up a new business as a sole trader on 1 January 2014 making decorative glassware. The estimated levels of sales in the first seven months of the 2014 were as January February 20,000 March April May June July 24,000 28,000 27,000 33,000 33,000 It is expected that 10% of the total sales value will be cash sales. The remaining 90% of sales will be collected on the following two months. A 25% discount will be offered to credit customers settling within one month. It is estimated that 50% of the credit customers will take advantage of the discount while the remainder will take the full two months to pay Production will need to be 5% higher than the sales of the following months. Variable production costs are as follows: Variable January February March April RM May RM June Costs RM 6,300 7,560 8,820 8,505 10,395 10,395 4,200 5,040 5,880 5,670 6,930 RM RM RM Labour Materials Overhead 2100 2,520-2,940 2ss--s405 a 6,930 835 3,465 3,465 Labour is paid in the month in which labour costs are incurred. Materials are paid one month later and variable overheads are paid two months later. GG employed a fim of consultants to give him initial business advice. Their fee of RM1 2,000 will be paid in February 201-4. Smelting machinery will be purchased on 1 Jamuary 2014 for R/200,00 and payable in February 2014, Further machinery will be purchased for RM50,000 in March 2014 and payable in April 2014 Reguired a) Prepare a cash receipts schedule for the six month period ended June 30, 2014 Show monthly amount (8 marks) b) Determine the amount of account receivables as of June 30, 2014. (2 marks) e) Prepare a cash disbursements schedule for the six month period ended June 30, 2014 Show monthly amount (8 marks) d) Compute the net cash inflow or outflow in each of the month. The company requires a minimum cash balance of RM5,000. Compute the deficit amount the company needs to finance or the excess cash available for the company to invest