Question 1 Delicious Catering Supply sells various equipment and supplies to restaurants in the local and surrounding communities. The companys executive, Encik Haziq Azim, has requested your help in preparing a cash budget for the month of May & June. Encik Haziq Azim accumulated the following information for you: i. The cash balance at May 1 was estimated to be RM80,000. ii. Actual sales of April and May and budgeted sales for June are as follows: April RM May RM June RM Cash sales 120,000 110,000 105,000 Credit sales 180,000 240,000 300,000 Total sales 300,000 350,000 405,000 iii. Credit sales are collected over a two-month period. With 60% being collected in the first month and the remainder being collected in the second month. iv. The purchases are made of 70% total sales for the current month. All purchases are paid in full in the same month of purchases. v. Selling and administrative expenses are budgeted to be RM50,000 for each month which are included RM500 of depreciation. vi. Equipment costing RM90,000 will be purchased in June by cash. vii. Dividends of RM21,000 will be paid out in June. Required: a) Explain the THREE (3) main advantages of budgeting. (3 marks) b) Prepare a schedule of collection for the month of May & June. (10 marks) c) Prepare a schedule of payment for the month of May & June. (5 marks) d) Prepare cash budget for the month of May & June.