QUESTION 2 a) Iqbal Hanif Holdings is trying to estimate its cash requirement for the third quarter of 2017. The company's forecasted sales are as follows: Month April May June July Sales (RM) 80,000 85,000 90,000 100,000 Month August September October Sales (RM) 125,000 105,000 130,000 b) The company makes 50 percent cash sales, 40 percent is collected one month after sales, 5 percent is collected two months after sales and 5 percent is uncollected. c) Purchases of raw materials are 70 percent of sales and are made one month before the sales occur. Payment is made equally in the two months after purchases. d) Operating expenses will be 10 percent of the monthly sales. The company fixed monthly expenses are: RM 20,000 for wages, RM 3,000 for rent, RM13,000 for depreciation and RM 2,000 for insurance. e) A quarterly dividend of RM4,000 will be received at the end of each quarter. f) A 7 percent semi-annually interest payment on RM100,000 note payable is paid in July. g) Ending cash balance for June 30th 2017 is RM55.000 and the minimum balance of RM30,000 must be maintained at all times. Any short term financing needed if any, should be paid off in the month following the month of financing with an annual interest rate of 10 percent per annum. Based on the above information, prepare a cash budget for the third quarter period ending on 30th September 2017. (20 marks)