Reference no: EM132772739

XYZ sdn bhd estimating its cash requirement for the third quarter year 2011. The company's projected sales are as follows:

month sales (rm)

march 170,000
april 160,000
may 140,000
june 180,000
july 200,000
august 220,000
september 195,000
october 180,000

i) cash sales are 10% of the current month's sales, while 90% of them were sold on credit. 60% of the month's credit sales are paid in the month following the sale, while 30% of it are paid in the second month following the sales. another 10% is bad debt.
ii) purchases are 50% of sales and were made one month before sales.
iii) payments on accounts are on 30% of current month's purchases plus 70% of the previous month's purchases.
iv) wages and salaries amounting to 10% of the preceeding month's sales.
v) an 8% semi-annually interest payment on rm 100,000 notes payable is to the paid in July 2011.
vi) the company plans to pay rm 6,500 in cash for a brand-new computer in august.
vii) a quarterly dividend of rm 10,000 will be paid to ABC corporation in March, June, September and December.
viii) the firm's ending balance for June 30, 2011 is rm56,000 and the minimum balance the firm wishes to have for every month is rm 25,000.

Problem 1: how to prepare cash budget for XYZ Sdn Bhd for the third quarter of year 2011?