what is schedule of expected cash collections for July, August and September?

Spidennan Company is a merchandising company. The following information has been gathered to assist in preparing a cash budget for the quarter: b. d. f. g. h. k. Extract sales monthly budget for July-September arc: July August September- Sales (RM) 300,000 450,000 250,000 2(YYo of sales an: cash sales and the remaining are on credit sales. Credit sales for July to September arc collected over a three-month period With 100/0 collected in the month of sale, 70% collected in the month following sales and the remaining 20% collected in the second month following sale. May's sales totalled RMI and June's sales totalled RM 150,000. The required inventory purchases for July, August and September are RM231,OOO, RM287,OOO and RM 168,000 respectively. Thc pattern for payment to supplier are one-half of the month 's inventory purchase is paid for in thc month of purchase and thc other half is paid for in thc following month. The ending balance for account payable at 300' June for inventory purchases total RM63,OOO. Monthly expenses are as follows: Selling expenses Administrative expenses (include Depreciation RM 10,000 each month) Comml ssion Rental July 38,000 22,500 3,000 1,500 August September 55,500 26,000 4,500 1,500 26,500 20,500 2,500 1,500 Dividend of RM21 ,500 Will be declared and paid in July. Machinery costing RM8,OOO will bc purchased for cash in August. The cash balance at 30th June is RM26,OOO; thc treasurer Wants to maintain a minimum cash balance ofRM20,OOO at thc end of each month. The company has an agreement with a local bank that allows thc company to borrow up to RMI OO,OOO. The profit rate on borrowing on this loan is 2.5% per month. The company will repay thc loan plus accumulated profit at the end of the quarter. Required: a. Prepare a schedule of expected cash collections for July, August and September. (6 marks) b. Prepare a schedule of expected cash disbursements for merchandise purchase for July, A ugust and September. (6 marks) c. Prepare a cash budget for J Illy, August and September as Well as in total for thc quarter. ( I I marks) d. What would be the best decision by the management if the cash budget shows: i. surplus where total cash receipts morc than total cash payments? ii. deficit where total cash payments more than total cash receipts?