Reference no: EM133169259

The following information is budgeted for Hana Sdn Bhd (HSB) for second quarter next year:

                                                                April                 May        June

Sales                                                    RM10,000          RM30,000             RM40,000

Purchase of materials                        RM50,000          RM30,000            RM20,000

Rental expenses                                 RM5,000            RM5,000               RM5,000

Fixed overhead                                    RM40,000         RM40,000            RM40,000

Variable overhead                                RM2,000           RM5,000               RM5,000

Receipt- sales of used equipment              -                 RM55,000                  - 

Additional information:

• All sales at HSB are on credit. Past experience indicates that 80% of sales will be collected in the month of sale and the remaining 20% will be collected in the following month.
• HSB purchase all materials on credit; 90% of purchases are paid for in the month of purchase, the remaining 10% are paid for in the following month. The purchase of materials for the month of March is RM30,000.
• Fixed overhead include depreciation of RM3,000.
• Variable overhead and rental expenses are paid within the month they are incurred.
• The company received 7% dividend from investment of RM60,000 in April.
• An equipment costing RM20,000 will be purchased in May. Payment of the equipment will be in 2 equal payments starting May.
• Opening cash balance in April is RM160,000.

Question 

1. Give a cash budget for the months of April, May, and June