September 2011: Section B. Question 5 Banyak Untung Sdn. Bhd. is planning next year's production. Its budgeted expenses would be RM5 million. The company purchased RM1 million worth of inventory on June 1st by credit. The company will pay the amount at the end of the credit period 2/10 net 40. The company decided to sell the finished goods on September 1st and its credit policy is 5/10 net 30. The customer normally pays on discount basis. (Assume 30 days a month) cash cycle cash turnover and b) c) iv) vi) minimum operating cash. Explain two (2) motives for holding cash. (2 marks) (2 marks) (2 marks) (4 marks)