The Executive Director of Sinar Cahaya Sdn Bhd has requested your assistance to prepare his company's budgets for the last two months of 2018 . He supplies all the necessary information as follows: 1. The beginning cash balance on November 1,2018 was RM17,000. 2. The unit-selling price of the company's product is RM100. Below is the sales in unit for October, November, and December: 3. The company's policy indicates that 20% of the sales are in cash, and the balance is credit (Continued) sales. One half of the credit sales are expected to be collected in the month of sales and another half will be collected in the following month. 4. The following is the information regarding merchandise purchases: 5. All purchases are on account. The company expects to pay 30% of the purchases in the month of purchase and the remaining will be paid in the following month. 6. The company also estimates the yearly fixed operating expenses for 2018, which include (assume these expenses are distributed evenly for every month and paid as incurred): " Note: Depreciation expense for fixed assets of RM55,000 is included in administrative expenses. 7. The only variable expense is sales commission, which is 2% of monthly sales. The commissions are paid in the following month after the sales. 8. The company plans to buy additional office equipment in cash at a price of RM12,500 in November 2018 . This equipment will be depreciated at an estimated rate of 20% of the cost per year. 9. The annual bonus payments to employees will be made at the end of December 2018 totalling RM5,400. 10. The company specifies that the minimum monthly cash balance to be at least RM15,000. Loans in multiples of RM1,000 can be made if there is cash deficiency. Loan is made at the beginning of the month at an interest rate of 12% per year. Loan repayment together with its interest charge will be made at the end of the month as soon when there is cash excess. Instructions Prepare the following budgets for November and December, 2018: a. Sales budget b. Schedule of cash collections from sales c. Schedule of payments for merchandise purchases d. Cash budget