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Question 2 The projected sales of Kelam Malam Holdings for the first and second quarter of 2019 are as follows: Month Total Sales (RM) January

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Question 2 The projected sales of Kelam Malam Holdings for the first and second quarter of 2019 are as follows: Month Total Sales (RM) January 2,500,000 February 2,600,000 March 2,650,000 April 3,630,000 May 3,850,000 June 3,780,000 July 3,900,000 a) The company makes 20% cash sales, 50% are collected in the month following sales, and 30% are collected in the second month following sales. b) Purchases are 60% of sales and are made one month before the sales occur. Payments are made equally in the two months after the purchases. c) The company pays RM30,000 each month for wages and RM20,000 each month for rent and other administrative expenses. d) Selling expenses are RM40,000 per month. e) Tax repayment of RM30,000 are made at the beginning of each quarter. f) A machine costing RM70,000 will be bought on May 2019, and the monthly depreciation is RM200. g) Interest on term loan of RM15,000 is payable at the beginning of every quarter. h) Beginning balance is RM80,000 and a minimum of RM20,000 must be maintained at all times. Prepare a cash budget for Kalam Malam Holdings for the second quarter of 2019. (20 marks)

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