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Question 3 - Show your workings. Dynamic Sdn . Bhd . ( DSB ) projected sales for the first six months of 2 0 2
Question Show your workings.
Dynamic Sdn BhdDSB projected sales for the first six months of are given below.
DSB anticipated there will be of sales collected in the month of the sale, are
collected in the month following the sale, and are written off as uncollectible.
Cost of goods sold is of sales. Purchases are made the month prior to the sales and
are paid during the month the purchases are made ie goods sold in March are bought and
paid for in February
Total other cash expenses are RMmonth The company's cash balance as of
February will be RM Excess cash will be used to retire shortterm borrowing
if any DSB has no shortterm borrowing as of February
Assume that the interest rate on shortterm borrowing is per month. The company must
have a minimum cash balance of RM at the beginning of each month. Round all
answers to the nearest RM
REQUIRED: Set up a cash budget for DSB for the month of February until June
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