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Vinegar Berhad had projected its sales for the first half of 2022 to be as follows: Month January February March RM 200,000 240,000 400,000 Month
Vinegar Berhad had projected its sales for the first half of 2022 to be as follows: Month January February March RM 200,000 240,000 400,000 Month April May June RM 560,000 780,000 640,000 Cost of goods sold is 50% of sales. Purchases are made and paid for one (1) month prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are RM20,000 per month. Vinegar Berhad is planning to buy a machine worth RMS0,0 00 cash in May 2021. The company's cash balance as of 28th February 2022 is projected to be RM40,000, and the company wants to maintain a minimum cash balance of RM30,000. Excess cash will be used to retire short-term borrowing (if any exists). The company has no short-term borrowing as of 28th February 2022. Assume that the interestrate on short term borrowing is 1% per month. Required: Prepare a monthly cash budget for the months of March, April and May 2022. (12 Marks)
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