QUESTION 2 [20 MARKSI In preparation for the quarterly cash budget, the following revenues and purchases information have been compiled. Month May (actual) June (actual) July (forecast) August (forecast) September (forecast) Sales 6,000,000 9,000,000 2,000,000 3,000,000 4.000.000 Purchases 7,000,000 4,000,000 1,000,000 1,500,000 2,000,000 Additional information: i. In the past, 20% of sales were on cash basis, and the collection were 50% in the first month, and 30% in the second month. ii. For the purchases, 30% of which are paid in cash, 40% are paid one month later, and the rest is paid two months after purchase. iii. Interest income of RM100,000 on fixed deposit will be received in September. iv. Wages and salaries are RM32,000 plus 5% of sales in each month. The monthly rent is RM20,000. A principal and interest payment on an outstanding loan is due in September of RM150,000. vii. Property, plant and equipment costing RM2,000,000 will be purchased in July. viii. Depreciation expense each month of RM45,000. ix. The firm has a beginning cash balance in July of RM350,000 and maintains a minimum cash balance of RM1,000,000. vi. Required: (a) Calculate the cash receipts budget for the month of July, August and September. June July August September Sales Cash receipts: Total cash receipts marks are allocated for the month of July, August and September only. (5 marks] 6) Calculate the cash payments budget for the month of July, August and September May June July August September Cash Payments: Total cash payments * marks are allocated for the month of July, August and September only. [10 marks] c) Calculate the cash excess / (required) for the month of July, August and September July August September Net cash flow Opening cash Ending cash Min. cash Cash excess/ required [5 marks]