The Kejore Company has the following information available:

Month Budgeted Sales

May RM84,000

June 72,000

July 74,000

August 76,000

September 78,000

October 78,000

Budgeted Operating Expenses Per Month

Wages RM12,600

Advertising 27,200

Depreciation 19,000

Rent 20,400

Freight-out 20% of sales

Sales commission 5% of sales

Other Expenses and Revenue

Dividends paid in July 60,000

Purchase equipment for cash in August 4,500

Rent received (August and September) 100,000

The cost of goods sold rate is 65% and the desired ending inventory level is 25% of the next month's cost of sales. Fifty percent of purchases will be paid on the month purchases and remaining in next month.

Credit sales are 80% of total sales. Collections of credit sales are 40% in the month of sale, 50% in the month after sale and 10% two months after sale. No uncollectible accounts are expected.

Kejore Company wants to maintain a minimum cash balance of RM10, 000. Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Interest of 1% per month is paid in cash at the end of each month debt is outstanding. Borrowing and repayment is carried out in multiples of RM1, 000. Cash balance at 1 July is RM200, 000.

Required:

a) Prepare a schedule of cash collections for July, August and September

b) Prepare a purchases and cost of goods sold budget for July, August and September.

c) Prepare a schedule of cash disbursements for operating expenses for July, August and September. All cash expenses are paid when incurred.

d) Prepare a cash budget for July, August and September.