Cash Budgeting Exercise Question 1 Coolpack Berhad, an investment holding company, is engaged in the manufacture of packaging products. The following is their sales budget for the first three months of 2021. Month January February March Apnl RM 1,800,000 2,500,000 1,300,000 2,100,000 a) 50% of a month's sales are collected in the month of sale, another 30% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. November sales amounted to RM2,400,000 and December sales amounted to RM1,900,000. b) Raw material purchase is 40% of sales and the purchases is made one month in advance of sales and paid immediately in the month of purchase. c) 30 employees work 160 hours a month and paid at the rate of RM30 per hour. Salary payment is made every month end 10 new employees will be recruited March d) Monthly manufacturing overhead cost is RM250,000. e) Cash purchase of a new machine in February is RM1,500,000. f) December 2020 ending cash balance is RM430,000. I Required: Prepare a monthly cash budget for Jamuury until March 2021. Question 2 Cloud Bakery sells only one product which is cheesecake. The following is their sales budget for the last quarter of 2020. Month October November December Units 9,000 8,500 8,900 a) The selling price is RM100 per unit. b) 40% of a month's sales are collected in the month of sale, another 40% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. August sales amounted to 8,000 units and September sales amounted to 8,400 units. c) Raw material purchase is 25% of sales and paid in the following month. d) 5 employees are paid at RM40 per hour and works 192 hours a month. 1 of the employees resigned in December and is not replaced. e) Monthly rent expense is RM5,000. f) September ending cash balance is RM75,000. Required: Prepare a monthly cash budget for October until December 2020