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Please show calculation: Mr.Chong was just appointed as an account manager at Cahaya Sdn Bhd, a retail company selling merchandise for the local market. Mr.
Please show calculation:
Mr.Chong was just appointed as an account manager at Cahaya Sdn Bhd, a retail company selling merchandise for the local market. Mr. Chong is responsible for preparing and monitoring the budget and expenses of the company's business. Currently, the company is preparing the quarterly budget as of 31 December 2021 and he has been asked by Ms. Sally, the owner of the company to prepare a master budget. The sales forecast for the merchandise is provided as follows: August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 Unit Sales 1500 1600 1700 2300 2.400 1300 The average selling price and the average purchase price per unit are RM200 and RM30 respectively. As for the desired ending inventory, it is expected to be 30% of next month's unit sales. Collections from customers will be 20% in the month of sale 50% in the month after sale, and 30% two months after sale As for projected cash payments, inventory purchases will be paid in the month following acquisition. Meanwhile, variable cash expenses are equal to 35% of each month's sales and paid in the month of sale. Fixed cash expenses are RM20,000 per month and are paid in the month incurred Depreciation on equipment is RM2.000 per month. The desired ending cash balance per month will be RM20,000. The cash balance and inventory purchases as of 30 September 2021 are RM40.000 and RM148,800 respectively Required (Show all calculations) Prepare the sales budget in ringgit for each month of fourth quarter for the year ending 31 December 2021 (3 marks) (b) Prepare the purchases budget in units and ringgit for each month of fourth quarter for the year ending 31 December 2021Step by Step Solution
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