Required: 

 Prepare a monthly cash budget for the period October 2018 to December 2018.

YTL Bhd. is preparing cash budgets for the period October to December 2018. The following: information is provided to assist in the cash budgeting process: Budgeted monthly sales revenues for the period are as follows: RM Actual Sales: August 2018 108,000 September 2018 128,000 Forecasted Sales: October 2018 November 2018 December 2018 130,000 140,000 150,000 20% of the sales are paid in the month in which they are incurred and customers are rewarded with a 10% cash discount. The remaining credit sales are collected over a two-month period, 70% in the month following the month of sales, and 25% in the second month following the month of sales. The balance is written off as bad debts. The company's gross profit margin is 40% Purchases are made two months prior to sales and two months' credit is taken from suppliers. Proceeds on the issuance of ordinary shares amounting to RM50,000 is expected to be received in mid-November 2018 and an ordinary dividend of RM12,000 to be declared in October 2018 will be paid in December 2018. Assume that YTL Bhd. will receive a cheque for RM50,000 on 25th October 2018, the cheque is deposited into the cheque deposit machine on 30th November 2018 and the cheque bounced two days later. Administration costs are expected at RM6,500 for October 2018. These costs are directly proportional to sales each month and are paid as incurred. Bank term loan amounting to RM100,000 will be fully repaid on 31st October 2018. The monthly interest of the loan is RM1,000 and will be charged at the end of each month. The overdraft balance on 30th September 2018 is RM20,000 (debit). Interest of 1% will be charged based on the closing balance at the end of each month and paid in the following month.