Reference no: EM132531761

The projected sales of Maluri Sdn. Bhd. are as follows:

Month, 2019                 Sales(RM)

January                         195,000

February                       128,000

March                          139,000

April                            245,000

• Of Maluri's sales, 12 percent is for cash, another 58 percent is collected in the month following the sales, and 30 percent is collected in the second month following sales. November and December 2018 sales were RM150,000 and RM180,000 respectively.

• Maluri purchases it raw materials two month in advance of its sales. The purchases are equal to 50 percent of the final sales. The supplier is paid one month after it makes a delivery. For example, purchases for March sales are made in January and payment is made in February.

• In addition, Maluri pay RM12,000 per month for rent, RM30,000 per month for salaries and RM20,000 for other expenditures. Maluri's cash balance on 31 December 2018 was RM20,000. This is the minimum balance the firm wants to maintain. Interest on short term loans is 12 percent per annum. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month and interest is paid at the beginning of the following month.

Question 1: Based on the information given, prepare a cash budget for Maluri Sdn Bhd for the first quarter of 2019 (January, February and March).