QUESTION 7 The Bingka Berhad has budgeted income as follows: June (RM) July (RM) August (RM) Credit sales 27,000 29,000 18,000 Cash sales 18,000 51,000 39,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month It is expected that the company will receive income from investment for RM80,000 in the month of August 2015 Other information related to cash disbursements: i. Purchase of inventory is all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: RM June 60,000 July 50,000 August 21,000 Selling and administrative expenses of RM9,500 each month. The company intend to purchase a delivery van for distribution purposes at a price of RM60,000 on August iv. Dividends of RM20,700 will be paid in July Purchase of a computer in August for RM6,000 cash vi. The beginning cash balance on 1st July 2015 is RM10,000. v. Required: Prepare cash budget for the month of July and August 2015. Show all your calculation. (17 marks)