Rona Sdn Bhd is a retail company. For the purpose of company planning and control, the...
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Rona Sdn Bhd is a retail company. For the purpose of company planning and control, the company intends to prepare a budget for the first half of 2024, from January to June 2024. The following information is provided: (i) Sales Menth December 2023 (Actual sales) January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 Sales (RM) 30,000 35,000 42,000 25,000 25,000 40,000 45,000 For your information, 30% of the sales amount is collected in the selling month, and the remainder is collected in the following month. Expenses Salary Transportation Advertising Depreciation Other expenses Total 3,750 10% of sales RM3,000 Rm1,000 5% of sales The company's policy stipulates that the value of ending inventory must be 20% of the sales for the following month. 60% of purchases are paid in the month of acquisition, and the remaining 40% is paid in the following month. In March 2024, the company plans to purchase a machine worth RM35,000 in cash. The company sets a minimum cash account balance of RM20,000. Loans can be obtained at an annual interest rate of 8%. The account balance on December 31, 2022, is as follows: Debit Casb 34,500 Account receivable 21,000 Beginning inventory 4,900 Plant and Machinery 107,050 Account payable Capital Net profit/loss Credit 8,680 95,000 63,770 Based on the above information, you are required to prepare a budget for Rona Sdn Bhd: 1. Sales budget II. Purchase budget III. Expenses budget IV. Cash budget V. Income statement Rona Sdn Bhd is a retail company. For the purpose of company planning and control, the company intends to prepare a budget for the first half of 2024, from January to June 2024. The following information is provided: (i) Sales Menth December 2023 (Actual sales) January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 Sales (RM) 30,000 35,000 42,000 25,000 25,000 40,000 45,000 For your information, 30% of the sales amount is collected in the selling month, and the remainder is collected in the following month. Expenses Salary Transportation Advertising Depreciation Other expenses Total 3,750 10% of sales RM3,000 Rm1,000 5% of sales The company's policy stipulates that the value of ending inventory must be 20% of the sales for the following month. 60% of purchases are paid in the month of acquisition, and the remaining 40% is paid in the following month. In March 2024, the company plans to purchase a machine worth RM35,000 in cash. The company sets a minimum cash account balance of RM20,000. Loans can be obtained at an annual interest rate of 8%. The account balance on December 31, 2022, is as follows: Debit Casb 34,500 Account receivable 21,000 Beginning inventory 4,900 Plant and Machinery 107,050 Account payable Capital Net profit/loss Credit 8,680 95,000 63,770 Based on the above information, you are required to prepare a budget for Rona Sdn Bhd: 1. Sales budget II. Purchase budget III. Expenses budget IV. Cash budget V. Income statement
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SOLUTION Based on the information provided I can help Rona Sdn Bhd prepare a budget for the first half of 2024 1 Sales Budget a January 2024 Sales RM ... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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