Question 4 Clean Pop Sdn Bhd is a company produces kitchen utensils. The company prepares its financial budget quarterly. As the team member of its budget committee, you are given the following information the expected cash flow for the fourth quarter of 2022: September October November December August (RM) 160,000 (RM) (RM) (RM) (RM) Cash Sales 175,000 155,000 165,000 118,000 Credit Sales 265,000 250,000 270,000 280,000 250,000 180,000 204,000 208,000 184,000 192,000 Purchases Administration overhead 35,000 50,000 55,000 60,000 44,000 Production overhead overhead Selling and 62,000 66,000 72,000 71,000 66,000 Distribution overhead 55,000 58,000 68,000 70,000 65,000 Wages and salaries 36.000 45,000 55.000 45,500 50,500 Additional information: (1) It is estimated that 70% of the debtors will be paying in the month following sales. To encourage early payment, the company offers a cash discount of 10% of the amount paid. The remaining 30% of the credit sales will be collected in two months after sales with no discount. (ii) All purchases are on credit terms. 40% of the purchases will be settled in the month of purchase. The remaining balance will be settled in the following months after purchase. (iii) All overheads will be paid in the month in which they are incurred. Depreciation is included in the production overhead for plant and machinery amounted RM21,000 per month. (iv) Wages and salaries are paid in the month they incurred. (v) Bonus for employees amounted RM35,250 will be paid in November 2022. (vi) In October 2022, the company will receive cash income from the investment amounting to RM224,000. MANAGERIAL AND COST ACCOUNTING 6/10 CONFIDENTIAL (vii) Cash balance on 30 September 2022 amounting to RM25,680 Required: Prepared the cash budget for fourth quarter 2022