The following are several information and assumption in preparing the cash budget for Triple ZZZ Company September - November 2022. The sales forecast (in RM) is:

MONTH/ MONTH

TOTAL SALES/TOTAL SALES (RM)

CREDIT SALES (RM)

Julai/July

45, 000

33, 750

August

65, 000

48, 750

September /September

60, 000

45, 000

October/October

90, 000

67, 500

November /November

85, 000

63, 750

December

60, 000

45, 000

a) For credit sales, 80% of it will be collected in the next month and 20% will be collected two months after the sales.

b) The purchase of raw material is predicted at 60% of sales and is made in the month of sales.

c) Payment for purchases will be made equally in the two months after purchase.

d)Monthly fixed payments are as follows:

i. Office and warehouse rent RM4,500

Office and warehouse rentals of RM4,500

i. Salary RM5,000

Wages of RM5,000

iii. Premium insurans RM2,800

Insurance premium of RM2,800
e) Dividends amounting to RM10,000 will be received in October

f) The purchase of a new asset involving a cost RM25,000 will be made in the month of September

g) The cost of renovation will be paid RM20,000 in September and RM20,000 in November.

h) Opening cash balance that the company of September is RM15,000.

i) The cash balance that the company intends to hold every month is RM10,000.

j) Interest rate 12% per year will be charged if the company makes a loan.

Prepare a cash budget for Triple ZZZ Company for September – November 2022.