TAB company Bhd provides the following information in respect of its quarterly cash budget for the year 2020 as shown in the table below.

• TAB company Bhd currently has beginning cash balance of RM10,000 and intends to maintain a minimum cash balance of RM30,000 each quarter.
• The company can borrow at the beginning of the quarter in which the funds are needed to maintain the minimum cash balance required and the interest on loan is 5% per year.
• The load is repaid at the end of the quarter in which the company has sufficient fund.
• The interest on outstanding loan is paid in the quarter when the loan is repaid.
• You are required to complete the quarterly cash budget table for TAB company.
• Note: Do not add any column or row to the Table given.

Q1

Q2

Q3

Q4

Net change in cash

(RM50,000)

(RM10,000)

RM82,000

(RM10,000)

Beginning cash balance

RM10,000

New borrowing needed

Interest paid on loan

Loan repayment

Ending cash balance

Minimum cash balance

(RM30,000)

(RM30,000)

(RM30,000)

(RM30,000)

Ending short term debt

(Accumulated Loan)

• 23 entries * 0.4 marks = 9.2 marks
• Workings for borrowing, and interest paid on loan = 0.8 marks
• Total marks = 10 marks