REQUIRED: Prepare a detailed Cash Budget for the month of October until December 2021 for Thrifty Drive Sdn Kaka and Kiki planned to set up a car rental business named Thrifty Drive Sdn Bhd.

Kaka and Kiki planned to set up a car rental business named Thrifty Drive Sdn Bhd. They decided to prepare a cash budget covering the start-up capital for the business. The business are going to prepare 4 weekly budget period in a month from October until December 2021. The transactions are as follows: 1. On the first week of October, RM42,000 would be deposited in the business. They make a hire purchase of six cars costing RM325,000 with monthly installment of RM780 each. Down payment being made in October amounted to RM32,500 and installment start in November 2021. 2. Rental business will start in second week of October. They estimates four of the cars will be rented everyday from Monday to Friday inclusive and at weekends all six cars will be rented. Rental charges will be as follows and payments are all in cash term only. Weekday rate RM100 per day per car Weekend rate RM150 per day per car 3. They made an arrangement with Shell to open an account for fuel which was agreed to settle in the following month. The price per liter is RM1.42 and the forecast fuel usage is as follows: October November December Litres 400 450 400 4. Maintenance service costs for all the vehicles would amount to RM300 per month and paid in the month of maintenance. Maintenance service would commence in November. 5. Fixed cost for the business would be RM800 per month paid during the month it is incurred. 6. Kaka and Kiki would pay themselves a salary of RM550 per month each and the would employ three staffs, each will be paid a salary of RM400 per month which start in October. 7. They anticipate the business will developed and add another three more cars for credit in December. The cars costs RM38,500 each. The down payment of RM1,200 each being paid in the month of purchase and installment of RM510 in next month.