QUESTION 6 Jack Dawson Sdn. Bhd prepares its financial budgets quarterly. The functional budgets prepared by the company for the six months ended 30 June 2016 contain the following information: February March April May June RM'000 RM'000 RM'000 RM'000 RM 000 Selling and distribution 50 65 70 85 100 overhead Administration overhead 45 60 65 80 90 Factory overhead: Fixed 60 60 60 60 60 Variable 45 50 65 80 70 Wages and salaries 250 300 450 460 450 Material purchased 900 800 750 900 850 Cash sales 800 700 650 550 800 Credit sales 700 600 900 800 700 Additional information: i) Two third of debtors will pay in the month following sales and the other one third is given 2 months credits. ii) 50% of the amount due to suppliers is paid in the month of purchase. The balance due is paid in the month following purchase. Wages and salaries are paid in the month incurred. iv) Depreciation is included in the fixed production overhead for plant and machinery RM8,000 per month and depreciation for equipment amounted to RM2,000 per month. v) All other overhead is paid in the following month. vi) The company declared and paid dividend amounting to RM30,000 in June 2016. vii) RM50,000 were paid in May 2016 for purchased of new equipment. viii) In April 2016 the company received income from investment amounting to RM250,000 cash. ix) Due to increase in demand and sales for year 2015, the company decided to make an extension to the existing factory building. The cost for extension is paid in June for RM30,000 x) Cash balance on 31 March 2016 amounting to RM68,000. Required: Prepare the cash budget for April, May and June 2016. (25 marks)