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Please help me i will give good rating Razali intends to run a laundry shop on 1 January 2020 with an initial capital of RM32,480
Please help me i will give good rating
Razali intends to run a laundry shop on 1 January 2020 with an initial capital of RM32,480 consisting of: RM Cash in bank 1 980 Cash in hand 500 Machine 30,000 Razali plans to apply for a loan of RM12,000 in February 2020 at an interest rate of 8% per annum. The loan will be repaid monthly for 4 years, starting the following month. The estimated receipts and payments for his business are as follows: 1) Revenue from laundry services for January 2020nwas RM8,900. This revenue is expected to increase 10% each month from the following month. ii) The total purchase of detergents by month is as follows: RM January 1,500 February 1,800 March 2,160 60% of the purchase of detergent will be paid in cash and the balance will be paid in the following month. iii) The monthly rent is RM1,200. iv) Utility budget RM January 860 February 970 March 1,120 v) The business plans to buy five units of dryers and two units of washing machines at a total cost of RM40,000 in March. An advance payment of 60% will be made and the balance paid in full in the following month. Required: On behalf of Razali, prepare a cash budget for the three months ending 31 March 2020Step by Step Solution
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