subject: management accounting

QUESTION 4 The management of MarineBio Sdn Bhd, a medical device company has estimated a continous increase in company's prot during the last quarter of 2019 clue to research and development investment made at the beginning of the year. Mr. Kayo, the cost accountant of the company has planned to avoid neither excessive nor insufficient cash-in-hand. He provides the following data for the purpose of preparing cash budget for the period between October to December 2019. mm... 0...... we mi- (.900 8,000 m--s-m-n_ 4.000 mm. moo costofmarenavwm nun-n:- _lmm Additional information: 1. 30% of the sales are on cash basis while the balance is on credit sales. Payment from debtors will be collected two months after the sales. 2. All purchases of material are made on credit. The suppliers give a 5% discount due to good previous payment record. All payments are due one month after the purchases. 3. Wages are paid in the month they are incurred. 4. Includes in the overhead costs are: i. Depreciation charges on motor vehicle of RM9,600 per annum. ii. Provision for taxation RM700 for the month of November 2019. 5. The company plans to dispose machinery in September 2019. The machinery was purchased for RM70,000 two years ago. It is expected that the machinery will be sold at RM52,000. The sale proceed will be collected in two equal instalments in November and December 2019. New machine will be acquired in December 2019. The deposit for the machine will be 20% from the original cost of RM80,000. This will be paid in December 2019. The balance will be paid starting from January 2020. 6. It is expected that a loan of RM150.000 will be granted in October 2019. The interest on the loan is 8% per annum and will be paid starting one month after the loan is granted. 7. The opening balance of October 2019 showed a decit of RM 18.000. REQUIRED: Prepare a Cash Budget for the months of October, November and December 2019. (TOTAL: 25 MARKS]