QUESTION 2 Megah Holdings is trying to estimate its need for funds of year 2018. The company sales are as follows: Month March 2018 April 2018 May 2018 June 2018 Actual Sales (RM'000) 2,230 3,550 2,600 2,440 Month July 2018 August 2018 Forecasted Sales September 2018 October 2018 November 2018 December 2018 (RM'000) 3,680 3,800 4,250 4,000 3,900 3,780 a) The collection of sales is 35 percent for cash, whereas the balance is collected in the following month. b) Megah Holdings purchases raw materials two months in advance. Amount of raw materials needed is 60 percent of its total sales. c) The supplier is paid 40 percent in the same month in which the purchase occur, while the balance will be paid equally in the two months after purchase. d) Rental of RM5,000 is received every month. e) Dividend of RM86,000 will be received in September. f) Utilities expenses is 5 percent based on the current monthly sales. g) The company makes a monthly payment of RM85,000 for salaries and RM37,000 for other administrative expenses. Prepare a cash budget for the third quarter of 2018. h) The company will pay insurance premiums of RM15,500 every month and taxes of RM11,000 is payable in August. i) Ending balance for June is RM123,000 and the company intends to maintain a minimum balance of RM60,000 every month. j) Interest rate of 12 percent per year will be charged if the company makes a loan. (20 marks