Question 3 Ehsan Corporation is trying to estimate its needs for funds during each of the months covering the last quarter 2017.Al information needed is given below. a) Sales were RM55,000 in June, RM60,000 in July and RM70,000 in August. Sales have been forecasted to be RM75,000, RM66,000, RM57,000 and RM53,000 for the months of September, October, November and December respectively. In the past, 10% of sales were on cash basis ad te collections were 40% in the first month. 30% in the second month and 20% in the third month following the sales. b) Purchases are 60% of each month's sales, 15% of which are paid in cash, 65% ae paid one month later and the rest is paid two months after purchase. c) d) The monthly rent and loan payments are RM1,000 and RM1,000 respectively which both to be paid every month. Utilities for the firm with average 2% of sales and are pad in the month of their incurrence. Wages and salaries amount to RM 1,000 plus 5% sales in each month. e) September's ending cash balance is RM11,200 and the company has a policy of maintaining a minimum cash balance of RM10,000. As a financial manager, you are required to prepare a cash budget for Ehsan Corporation for the last quarter of 2017 (20 marks) END OF QUESTIONS