QUESTION 1 Moon Enterprise is planning its cash receipts and disbursements projections for the second quarter of 2023. The company plans to acquire a new packaging machine costing RM60,000, payable in two installments. The first installment of RM30,000 will be paid in April and the remainder in the following month. In addition, its short-term financing with KSBank will be due on 30 June in the total amount of RM75,000. The trial balance on 1 April shows in part the following information: Cash Merchandise inventories Accounts payable Debit RM15,600 RM60,570 Credit RM97,800 The average selling price of the company's products is RM125 per unit. Actual and budgeted sales (in RM) are as follows: February (actual) March (actual) RM 412,500 437,500 337,500 312,500 325,000 287,500 3,500,000 April May June July Total budgeted sales for the year ended Sept 30 All sales are on account. Sales terms call for a 2% cash discount if payment is made within the first 10 days of the invoice date. Past experience has shown that 60% of a month's sales will be collected within the discount period, 20% in the month of sale after the discount period expires, and 18% in the following month after sale. The remaining 2% will be uncollectible. The company carries large inventories as a precaution against stock-outs. For this reason, the target ending merchandise inventories are 30% of the following month's cost of goods sold. The company's cost of goods sold is 60% of its sales. All merchandise purchases are payable within 15 days. Thus, approximately 40% of the purchases in a month are due and payable in the next month. Total budgeted selling and administrative costs for the year are RM980,000. Of this amount, RM630,000 is considered fixed which includes depreciation of RM90,000. The remainder varies with sales. Both fixed and variable selling and administrative costs are paid as incurred. (c) If the company wish to maintain a minimum cash balance of RM15,000 per month, would the company be able to repay the short-term financing as scheduled with the current projections? (Hint: Prepare a cash budget, by month and in total, for the second quarter of 2023 and explain your answer). (11 marks)