Sharjah International Paints and Chemicals Limited is a multinational company operating in and around The United Arab Emirates. The company is having expertise in the manufacturing of certain paints and chemicals which are mainly for export purpose. The company provided you with the information on actual and project sales in units and you are required to make the use of this information so as to provide the company as required. Month Units 48,000 July 2018 (Budgeted) 70,000 90,000 80,000 50,000 August 2018 (Budgeted) September 2018 (Budgeted) October 2018 (Budgeted) November 2018 (Budgeted) December 2018 (Budgeted) January 2019 (Budgeted) February 2019 (Budgeted) 40,000 68,000 80,000 Required: 1. Prepare a Sales budget in units and dirham for the months of July to December 2018 and for the two quarters in total. The selling price per unit is AED 50. (5 marks) Particulars July Aurust September October November December Total of Selling price per Bedreted Sales R 148000 2 0000 90000 30000 30.00 50.00 50.00 50.00 2 40000000000000014500000.00 4000000 002 TS0700 13900000 2. Assume that the company collects 60% of its sales in the mouth of the sale, 40% in the month following the sale. Prepare a Cask Receipts schedule for 6 months ending December 2018 and total for the last two quarter of 2019. Accounts Receivable balance as of June 30, 2018 Was AED 450,000 (15 nurk) FEATUSEL TULDU N ESSUUUUUUU OUTDOOR 90 2000 ST BIO EN BEN 150W URED T R 000200 TUUUUU BORT TWOWWWWWWWWWWW 3. Refer to the projected sales that you have calculated. Prepare Production Budget for 6 months ending December 2015 and total for the last two quarters of 2018. The company's inventory at the end of each month must equal 20% of next month's sales. On June 30, 2018, inventory balance was 12,000 units. (10 Marks) Particulars July August September October November December Totalta quarter Sales units 48000 70000 90000 30000 30000 40000 378000 Add: Desired ending 14000 15000 15000 20000 1000 13600 13600 inventory 20% of next month Less: Opening inventory 12000 14000 15000 15000 10000 3000 12000 Nos of unit be produced 50000 74000 38000 7 4000 48000 45600 3 79600 4 Prepare a Direct Materials Purchase Budget in quantity and in dollar amounts for 6 months ending December 2018 and total for the last two quarters of 2018 based on the production budget above. One unit of product requires 8 liters of materials and the company's policy is to maintain an ending inventory of materials equal to 30% of next month's production needs. Each liter of direct materials cost AED 3.50. June 31, 2018 inventory balance was 96,000 ounces (16 marka) Particulars July August September October November December Total of two quarter Unit to Produce 50000 74000 38000 74000 4 8000 4 5600 3 79600 Raw material needed per unit Raw material 4 00000 592000 704000 592000 584000 3643003036800 needed for unit Add: Desired units 177600 of materialin ending inventory (30% of next month production Less units of 211200 115200 109440 96000 beginning inventory Total Units of Raw 481600 6 25600 670400 529600 378240 424320 3 109760 material to purchased Un cost of raw 3.50 3.50 3.50 3.50 5.50 5.50 material cost of raw material 1685600.00 2189600.00 2346400.00 1853600.001325840.00 1485120.00 104100.00 to be purchased 5. A n that the company's policy is to pay 70% of each month's cost of purchases in the same month and 30% in the month after prepare a Cash Disbursement (cash payment schedule for 6 months ending December 2015 and total for the last two quarters of 2018. The accounts payable balance at the end of June 2019 was AED 296,000. (2 marka) Particulars July August September October November December Total of two quarter Account Payable 296000.00 295000.00 beginning 30-june July Purchase 1179920.00505680.00 HI L L 1685600.00 August Purchase 1532720.00 656380.00 2189600.00 September Purchase 1642480 00 703920.00 2346400.00 October Purchase 1297520.00 556080.00 1853600.00 November Purchase 926688.00 397152.00 1323840.00 December Purchase HILL 1039584,00 1039584.00 Total Cash 1475920 00 2038400.00 2299360.00 2001440.00 1432768.00 1436736.00 10734624.00 Disbursement 6. The company needs 0.20 hours of direct labor to manufacture one unit of production and has a policy of paying a minimum of 6,000 hours per month and pays AED 15 per hour. Prepare a Direct Labor Budget for months ending December 2018 and total for the last two quarters of 2018. (10 marks) 7. The following are the projected cash expenditures for 2018 in AED: August Sept. Oct Manufacturing 152,000 158,000 186,000 202,000 July Nov 180,000 Dec. 118,000 Overhead 98,000 106,000 82,000 146,000 88,000 $4,000 Administrative 326,000 322,000 388,000 364,000 300,000 294,000 Equipment 200,000 600,000 1,200,000 purchase On June 30, 2018, the company had a cash balance of AED 272,000 on hand. The company has an arrangement with their bank to have a bank overdraft policy of maximum AED 500.000 as and when needed and borrows in the nearest '000s. The interest on the overdratt is 1.25 per month and paid at the time of loan repayment. The company also have a policy of maintaining a minimum cash balance of AED 200,000 at the end of each month. In November, the company plans to pay a dividend of AED 300,000 8. Prepare a Cash Budget for the last 6 months of 2018 and in total (25 maris) 9. Cover Page and Formatting a) Cover Page (2 marka) b) Table of contents (2 marka) -) Formatting (3 marka)