Prepare a cash budget for ANTARABENUA Berhad

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Reference no: EM132794308

Question - The projected sales of ANTARABENUA Berhad for the first seven months of 2021 are listed below:

Month Sales (RM)

January 170,000.00

February 100,000.00

March 140,000,00

April 180,000.00

May 200,000.00

June 220,000.00

July 195,000.00

a. The company receives 10 percent of sales via cash and the balance are collected as follows; 60 percent will be collected one month after sales, 30 percent is collected two months after sales, and the balance will be collected three months after sales.

b. Purchases are 50 percent of sales and are made one month prior to sales. Payments are made equally in the two months after the purchases.

c. The company's salaries expenses are 10 percent of the previous month's sales. The company's fixed expenses are RM3,000.00 per month for rental, and RM2,000.00 per month for insurance premium.

d. Quarterly dividend of RM50,000.00 will be paid to Dermaga Corporation at the end of each quarter.

e. The company plan to purchase a new machine by cash amounting RM70,500.00 in May. The monthly depreciation is RM2,000.00.

f. Interest of RM15,000.00 from investment will be credited in ANTARABENUA Berhad's bank account in May.

g. Beginning balance is RM15,000.00, and a minimum of RM40,000.00 must always be conserved. Any short-term financing required, should be paid off in the following month with an annual interest rate of 10 percent per annum.

REQUIRED - Prepare a cash budget for ANTARABENUA Berhad for the second quarter of 2021 (April, May, June).

Reference no: EM132794308

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