QUESTION 5 GambirBerhad has budgeted sales revenue as follows: June July August RM RM RM Credit sales 27,000 29,000 18,000 Cash sales 18,000 51,000 39,000 Total sales 45,000 80,000 57.000 Past experience indicates that 60% of the credit sales will be collected in the month of sales and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June July August RM 60,000 50,000 21,000 Other cash disbursements budgeted: i. Selling and administrative expenses of RM9,500 each month. ii. Dividends of RM20,700 will be paid in July. iii. Purchase of computer in August for RM6,000 cash. iv. Purchase of a new machine at a cost of RM6,045, paid in August. Rental income receive each month at RM6,000. vi. The beginning cash balance on the July, 1 was RM10,000 V. Required: Prepare a cash budget for the month of July and August (30 marks)