Additional information: (i) Selling price is RM40 per unit. 10% of the sales are cash sales and the remaining sales are in credit. (ii) 60% of the debtors will pay at the end of the month of sales and remaining of the debtors will pay on the next month of sales. (iii) All purchases are on credit and the payment to creditors will be 70% in the month following the purchases and the balance will be paid two month after the purchases. (iv) 75% of wages paid in the month incurred while the balance will be paid on the first week of the following month. (v) The production overhead costs are inclusive of depreciation on machinery amounted to RM12,000 per month and are settled in the month incurred. (vi) In February 2022, the company sells a motor van which was bought in 2020 at a cost of RM54,000. The accumulated depreciation of the motor van is RM18,000 and a loss on disposal of RM4,100 is expected. Cash received from the sales of the motor van will be used as a down payment for buying a new lorry costing RM70,000. It is agreed that the remaining cost of the lorry will be settled by installments for 60 month with no interest. First installment will start in April 2022. (vii) The company will receive dividend from its investment in Bursa Malaysia amounting to RM15,800 in May 2022. (viii) The balance at the bank as at 31 March 2022 is an overdraft of RM50,000. Required: Prepare Cash Budget for Cenderawasih Sdn. Bhd in the second quarter 2022.
Additional information:
(i) Selling price is RM40 per unit. 10% of the sales are cash sales and
the remaining sales are in credit.
(ii) 60% of the debtors will pay at the end of the month of sales and
remaining of the debtors will pay on the next month of sales.
(iii) All purchases are on credit and the payment to creditors will be
70% in the month following the purchases and the balance will be
paid two month after the purchases.
(iv) 75% of wages paid in the month incurred while the balance will be
paid on the first week of the following month.
(v) The production overhead costs are inclusive of
machinery amounted to RM12,000 per month and are settled in the
month incurred.
(vi) In February 2022, the company sells a motor van which was
bought in 2020 at a cost of RM54,000. The
depreciation
of RM4,100 is expected. Cash received from the sales of the motor
van will be used as a down payment for buying a new lorry costing
RM70,000. It is agreed that the remaining cost of the lorry will be
settled by installments for 60 month with no interest. First
installment will start in April 2022.
(vii) The company will receive dividend from its investment in Bursa
Malaysia amounting to RM15,800 in May 2022.
(viii) The balance at the bank as at 31 March 2022 is an overdraft of
RM50,000.
Required:
Prepare
2022.
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