PART B - Answer THREE questions only. Question 1 Tijari Sdn Bhd is a main distributor of Mediterranean juices in Kuala Lumpur. The company's Budgeted Statement of Financial Position as of 30 June 2018 is shown below: Tijari Sdn Bhd Statement of Financial Position as at 30 June 2018 Assets RM Cash 90,000 Accounts receivable 136,000 Inventory 100,000 Plant and equipment, net of depreciation 210,000 Total assets 536,000 Liabilities and shareholders' equity Accounts payable Common shares Retained earnings Total liabilities and shareholders' equity 109,100 327,000 99,900 536,000 Mr Muiz, a newly hired accountant is preparing a master budget for the third quarter of 2018. He just attended a monthly operational meeting and gathered the following information: Estimated sales for July to October 2018 will be as below: July August September October Cash sales RM65,000 RM70,000 RM83,000 RM90,000 Sales on account RM200,000 RM250,000 RM300,000 RM350,000 Total sales RM265,000 RM320,000 RM383,000 RM440,000 Sales on account are collected over a three-month period: 20 percent collected in the month of sale, 60 percent in the month following the sale and 18 percent in the second month following the sale. The remaining 2 percent is uncollectible. The company's cost of goods sold is 70 percent of sales. Each month's ending inventory should equal to 30 percent of next month's cost of goods sold. With the long relationship with manufacturer, the company pays 50 percent of the juices in the month of purchase and another 50 percent is in the month following the purchase. Its monthly selling and administrative expenses are estimated RM55,000 inclusive of depreciation expense of RM5,000. The company purchased vehicles in the beginning of the year and the monthly instalments are RM12,000 throughout the year. The bonuses to be paid to its employees in each month of July and September are RM40,000 The insurance premium for the warehouse of RM60,000 is due in July. The company's policy is to maintain a minimum cash balance of RM20,000 and may seek short term Islamic financing from a local bank at a monthly profit rate of 2 percent per month. The company may arrange to get the financing at the beginning of any month needing the financing and may repay all or any amount of the financing, at the end of any month together with the profits due. Please anes on 1 ey Manufa The follo count Required: (a) Prepare the following: (Hint: Prepare columnar form of schedules/budgets) i. a schedule of cash collections for July, August and September 2018. (5 marks) ii. a merchandise purchase budget for July, August and September 2018 and the total for the third quarter of 2018. (6 marks) iii. a sche a schedule of cash disbursements for merchandise purchases for July, August and September 2018 (4 marks) iv. a cash budget for July, August and September 2018 and the total for the third quarter of 2018. Indicate in the financing section any financing that will be needed during the quarter. (10 marks) [Total: 25 marks]
