The Accountant of Combo Ctro has assembled the following data to prepare the firms cash budget for October, November and December 2020.

• Cash balances on September 30, is RM5,000 Minimum cash balance required is RM10,000 (must every period kept at this amt)

• Net sales:

Actual (RM)		Forecasted(RM)		COGS-70% net sales
July	40,000	October	100,000	56,000
August	60,000	November	125,000	70,000
September COGS	80,000 42,000	December	145,000	87,500

• All sales are on credit. The credit manager collects 50 percent of account receivable in the month of sale, 40 percent the month following sale, and 10 percent the second month following sale.
• COLLECTION : 50% -cash,
• 40% - next month
• 10% next 2 mth
• Cost of goods sold: 70 percent of monthly net sales.

Purchase of raw materials and component parts account for 40 percent of the cost of goods sold. (OKT 40% x56000), (NOV -0.4 x70000), (DEC -0.4 x87500)

Laguna pays for 80 percent of purchases in the month of purchases and 20 percent of purchases the month following purchase.

PAYMENT (0.8 x [0.4 x56000]) + 8400, (0.8 x [.4 x 70000]) + 0.2 x NMP,

0.8 x [0.4 x87500]) + 0.2 x NMP

• Direct labor and factory overhead are 35 percent and 25 percent respectively of the cost of goods sold.
• Equipment purchased RM20,000 will be paid out in November
• Any shortfall of cash will be finance through short term notes from Bank A at 12% interest annually and the repayment of loan and interest on the following month.- interest /12 = 1%

Prepare Laguna Sintok cash budget for October, November and December 2020.

CASH BUDGET

Aug Sep Okt Nov Dec

SALES 80 60 100 125 145

COLLECTION:

50 % CASH 50

40% NEXT MONTH 24

10% NEXT 2 MONTH 8

TOTAL COLLECTION/INCOME

COGS - 70% NET SALES

PURCHASES -40% COGS

PAYMENT

80% -CASH

20% NEXT MONTH

TOTAL PURCHASES/PAYABLE/DISBURSEMENT

p/s: hopefully u show me step by step of the calculation tysm :D