Question 1 Langkawi Resort has the following information about the projected cash budget: Sales Revenue January RM 141,500 February 152,700 March 163,400 April 175,500 May 179,900 The collection of sales revenues is based on the following policy 30% in the month incurred 40% in the following month of sales 30% after two months of sales . . Cost of sales averages at 70% of credit sales revenue. The payment for the cost of sales is as follows: 60% of the cost of sales paid immediately by cash 40% remaining of cost of sales paid at subsequent month . . Other budgeted expenses are as follows: Salaries Rental Utilities Insurance Other operating costs Depreciation (equipment) Interest March RM 20,000 5,000 4.550 800 9,900 10,000 5,800 April RM 21,000 5,000 6,550 800 10,100 10,000 5,800 May RM 23,000 5,000 7,550 800 11,100 10,000 5,800 . Additional information Payroll, utilities, other operating costs, and interest are paid in the month incurred Insurance is paid quarterly in March 3-month rent is paid at the beginning of every quarter A loan of RM4,700 for equipment is paid every month In May, sell some equipment with an estimated cash receipt of RM 20,220 and plan to buy other equipment for RM 60,000 in May. A quarterly bonus of RM 25,000 is scheduled to be paid in March. Requirement: Prepare a cash budget for March April, and May. The beginning cash balance for March is expected to be RM 5,550. (30 marks)