Question 3 Sizna Berhad is preparing cash payment figures ready for inclusion in a cash budget. The following information is relevant to the payment patterns for purchases, salaries and expenses. Sales Salaries Expenses October 2019 (actual) RM86,000 RM11,750 RM5,829 November 2019 (actual) RM87,700 RM11,750 RM6,179 December 2019 (actual) RM86,200 RM12,000 RM7,490 January 2020 (forecast) RM88,000 RM12,300 RM8,830 February 2020 (forecast) RM90,000 RM12,300 RM7,656 March 2020 (forecast) RM93,200 RM12.750 RM7,495 April 2020 (forecast) RM94.000 RM12.750 RM7,800 Additional information: a) 30 percent of sales are made for cash. Of the credit sales, half is received in the month after sale and the remainder is received in the month after that. b) The purchases are calculated as 60 percent of the next month's forecast sales and are paid two months after the date of purchase. c). Salaries are paid in the month that are incurred and expenses are paid in the month after they are incurred d) A new machine is to be purchased in January 2020 at a total cost of RM36,000. Payment for the machine is to be made in three equal monthly instalments beginning in January 2020. e) Other fixed monthly expenses: Rent RM4,000 Utilities RM1,100 f) A discount for payment in the month of purchase of 5 percent is offered by suppliers of 60 percent of purchases which will taken up by Sizna Berhad. g) Insurance premium expense shown a prepayment at 1 January 2020 of RM250 that will be offset with the next insurance premium due. The insurance bought by Sizna Berhad is RM14,000 per year. The premium will be paid quarterly every February, May, August and November respectively. h) Sizna Berhad wishes to continue withdraw RM2,000 every two months to spend on community services. The withdrawal will be taken on January, March, May, July, September and November. i) Sizna Berhad's ending cash balance for December 2019 is RM6,541 and a minimum balance the firm wishes to have is RM5,000 per month. Prepare a complete cash budget for the first quarter of 2020 for Sizna Berhad. [Total: 16 Marks)