Required: a. Prepare the 4 months Cash Budget from January to April 2021. b. Advise the management concerning the financial position of the company.

Answer ALL questions below. Question 1 The figures in the table below relate to HM Sdn Bhd which is seeking your advice on its nancial position. 2020 2021 Expected Results Budgets November December January February March April (RM) (RM) (RM) (RM) (RM) (RM) Sales 60.000 70.000 72.000 66.000 60.000 68.000 Materials 30.000 35.000 36.000 33.000 30.000 34.000 Direct 12.000 14.000 14.400 13.200 12.000 13.600 Lab0ur Overheads 12,600 14,700 15.200 13.800 12,700 14.300 TOTAL 54,600 63,700 65,600 60,000 54,700 61 ,900 COSTS NET 5,400 6,300 6,400 6,000 5,300 6,100 PROFITS You are provided with the following additional information: Each month consists of four weeks. 20% of sales are for cash. and 80% on credit. Half the credit customers pay in the month following the month of the sale and the balance two months later. All purchases are on credit and are paid for in the month following the month of the purchase after first deducng a 5% cash discount. Wages are paid one week in arrears. Overheads which include RM2.500 for depreciation each month are otherwise paid in the following month. In January 2021. the company will purchase a new delivery van for RM42.000 less RM6.000 trade in on the old van. Payment will be made 50% in the month of purchase and the balance of 50% in March. The bank balance at start of January 2021 is expected to be RM 2.800. No stock of raw materials or finished goods is held. ".32\