Please answer step by step with explanation.

Subject : Financial & Management Accounting

QUESTION B Excel Berhad is attempting to estimate its need for funds for the first quarter of the year 2022. The following information is provided: Sales in 2021 Forecasted sales in 2022 RM130,000 RM140,000 September RM135,000 January October RM125,000 February November RM110,000 March December RM120.000 April RM150,000 RM160,000 Additional information: a. 35% of sales are collected in the month of sales, 50% first month following the sales and balance 15% second month following the sales. b. Purchase of raw materials equal to 60% of sales and are made one month before the anticipated sales. c. Payments for the purchases are as follows: 60% in the month of purchase, 25% one month after purchase and 15% two months after purchase. d. Wages are 25% of the month's sales and are made in the month in which they are incurred. e. A quarterly dividend of RM60,000 will be received in March 2022. f. Monthly fixed expenses are insurance RM4,500, rental RM8,000 and depreciation RM12,000. These expenses are settled in the month incurred. g. A new machine will be installed and paid the deposit of RM10,000 in February 2022. The price of the machine is 50,000. Balance of the machine cost will be paid in two equal instalment in March and April. h. The company invests RM20,000 in a fixed deposit in the month of January. i. On December 31, 2021, cash balance of the company is expected to be RM28,000. Required: a. Prepare the monthly cash budget for the first quarter of 2022. (17 marks) b. Advice the company on handling the deficit cash flow. (3 marks) (TOTAL: 20 MARKS)