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Sekali Sekata Corporation's sales pattern for the second quarter 2011 and projected revenues for the other quarters of 2011 are as follows: MONTH April May
Sekali Sekata Corporation's sales pattern for the second quarter 2011 and projected revenues for the other quarters of 2011 are as follows: MONTH April May June July Aug Sept Oct Nov Dec SALES RM220.000 RM200,000 RM170,000 RM160,000 RM240,000 RM280,000 RM160,000 RM230,000 RM280.000 a) Historically, 40% of the sales are on cash basis and the balance will be collected equally in the following two months after the month of sales. b) Sekali Sekata Corporation purchases its raw materials two (2) months in advance of sales. 40% of the purchases will be cash transaction and the balance will be paid in the following month. Total purchases are 80% of each month's sales c) Fixed monthly expenses are as follows: 1) Fixed monthly rental RM 6,500 i) Depreciation expense RM500 ) Fixed loan payment RM3,800 iv) Tax payment RM1,200 d) Dividend of RM 2,500 will be received in the middle of each quarter. Dividend payment of RM 3,400 will be paid at the end of each quarter, e) Annual interest of RM30,000 will be paid at the beginning of each quarter. The monthly minimum cash balance maintained by Sekali Sekata Corporation is RM35,000 with an ending balance of RM6,500 in June. Prepare a complete cash budget for the third quarter of the Sekali Sekata Corporation in determining the company's cash condition (surplus/shortage)
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