The owner of Oshi Sdn. Bhd. (OSB) request you to prepare the cash budget for the company. The following information available to you. 1. Cash balance on 1 April is RM15,000. 2. Total sales for April and May are as follows: April May RM55,000 RM45,000 60% of the sales are expected to be in cash whilst the other 40% is on credit. The credit sales will be collected one (1) month after sales. 3. Purchases of materials will be made on credit. 50% of the credit purchases will be paid in the month of purchase and another 50% one month after the purchases. Estimated purchases are as follows: March RM20,000 April RM23,000 May RM30,000 4. Selling and administrative expenses are budgeted to be RM 18,000 for April and May. of that amount 30% is depreciation. 5. Proceed from sale of used equipment in May RM2,000. 6. Rent is RM19,000 per month. 7. The company received 5% dividend from unit trust investment of RM150,000 in April. 8. The company wishes to maintain a minimum cash balance of RM1,000 at the end of each month. The company borrows money from the bank at 10% interest if necessary to maintain the minimum cash balance. Assumed that borrowed money in this case is for one month. Required: a) Prepare a cash budget for April and May. (21 Marks) b) Discuss the purposes of preparing cash budget. (6 Marks)