Task 2: CLO3

Question

Financial information pertaining to Pedro Sdn. Bhd. as follows:

Beginning cash balance is $1,800,000

Sales are on credit and are collected 50 percent in the current period and the remainder in the next

period. Last quarter's sales were $8,400,000. There are no bad debts.

Purchases of direct materials and labour costs are paid for in the quarter acquired.

Manufacturing overhead expenses are paid in the quarter incurred.

Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are

budgeted at $340,000 per quarter, including $90,000 of depreciation.

Required:

Refer to the sales budget prepared in Task 1. Construct a cash budget for Pedro SdnBhd for the first

quarter of 2021.

Sales Budget in Task 1