Preparing a Cash Budget

1. Students are required to prepare a cash budget for April and May 20X2 for Anas & Co. Other receipts: April: Donation received, RM2,000.00 o May: Proceeds from the disposal of used equipment, RM2,500.00 O Case Study The company is preparing monthly cash budgets for the month of April and May 20X2. The following data are available from the records of the company. Other payments: April: Debt repaid, RM 10,000.00 o May: Purchase of an equipment, RM5,500.00 RM RM Sales 250,000 225,000 The company's cash balance on 1 April 20X2 is estimated to be RM30,000.00. the company must maintain a minimum cash balance of RM25,000.00 in the end of May 20X2. Raw Materials purchases 115,000 130.000 (20 marks) 65,000 70,000 Direct labour Manufacturing overhead costs Selling and administrative expenses 35,000 40.000 45,000 55,000 The company has the following business policies: Collection from customers is expected to be 60% of the sales in the month of sale and 40% in the month of following the sale. The company pay cash for 30% of the raw materials purchase in the month of purchases and the balance is due in the month following in the purchase All other items besides these two are paid in the month they are incurred. Other pertinent information are as follows: Sales: March 20X2, RM250,000. Purchases of raw materials: March 20X2, RM195,000