(a)next quarter. The following forecast sales for the year of 2021:Sakura Group has been engaged in the process of forecasting its financing needs over theMonthMaySalesRM775,000JuneJulyAugustSeptemberOctoberRM970,000RM880,000RM1,375,000RM1,633,000RM1,890,000The company's sales of 40 percent is collected in the month of sales and the remaining balance willbe collected in the following months after sales.Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month inadvance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following monthand the remaining is never collected.Additional information:(1i) Interest income of RM10,500 on marketable securities will be received in August.(ii) Other income of RM1,650 will receive every end of quarter.(iii) The firm paid worker wages based on 5 percent of sales in the month.(iv) The utilities is expected at 2 percent of sales in the month of the sales.(v) Monthly rental expenses is RM33,030.(vi) The cost of new asset is RM225,500 and pay in cash in July. This new asset will depreciateRM1,550 per month. (vii) The company will pay tax of RM55,090 in August and property tax of RM65,800 in September.(viii) Equipment expenses are RM75,080 are paid equally twice per year on February and August.(ix) A dividend of RM49,380 will be paid at the beginning of each quarter.(x) Beginning cash balance for the budget period is RM10,000 with a minimum cash balance ofRM50,000 and increase to RM155,000 in August and RM309,700 in September onwards.(xi) Interest on accumulated loan is at 15 percent annual interest and is paid in the following month.Prepare a monthly cash budget of quarter 3 in 2021 for Sakura Group.

The cash budget is prepared by forecasting the cash collections and cash payments. Any excess or…

(a) next quarter. The following forecast sales for the year of 2021: Sakura Group has been engaged in the process of forecasting its financing needs over the Month Sales May June July August September October RM775,000 RM970,000 RM880,000 RM1,375,000 RM1,633,000 RM1,890,000 The company's sales of 40 percent is collected in the month of sales and the remaining balance will be collected in the following months after sales. Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month in advance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following month and the remaining is never collected.

(a) next quarter. The following forecast sales for the year of 2021: Sakura Group has been engaged in the process of forecasting its financing needs over the Month Sales May June July August September October RM775,000 RM970,000 RM880,000 RM1,375,000 RM1,633,000 RM1,890,000 The company's sales of 40 percent is collected in the month of sales and the remaining balance will be collected in the following months after sales. Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month in advance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following month and the remaining is never collected.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 11SEP

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