BBQ Berhad projected sales for the first six months of 2023 are given below: Jan. Feb....

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BBQ Berhad projected sales for the first six months of 2023 are given below: Jan. Feb. Mar. April RM490,000 May RM740,000 June RM610,000 RM500,000 RM740,000 RM380,000 40% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. • Cost of goods sold is 60% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale. • Total other cash expenses are RM40,000/month. • The company's cash balance as of February 28, 2023, will be RM25,000. Excess cash will be used to retire short-term borrowing (if any). BBQ Berhad has no short-term borrowing as of February 28, 2023. Assume that the interest rate on short-term borrowing is 1% per month. • The company must have a minimum cash balance of RM15,000 at the beginning of each month. Required: Prepare a cash budget for the months of March to May 2023. BBQ Berhad projected sales for the first six months of 2023 are given below: Jan. Feb. Mar. April RM490,000 May RM740,000 June RM610,000 RM500,000 RM740,000 RM380,000 40% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. • Cost of goods sold is 60% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale. • Total other cash expenses are RM40,000/month. • The company's cash balance as of February 28, 2023, will be RM25,000. Excess cash will be used to retire short-term borrowing (if any). BBQ Berhad has no short-term borrowing as of February 28, 2023. Assume that the interest rate on short-term borrowing is 1% per month. • The company must have a minimum cash balance of RM15,000 at the beginning of each month. Required: Prepare a cash budget for the months of March to May 2023.

Answer rating: 100% (QA)

Total Sales receipts Current month first month second month 40 50 10 1 Cash Budget Particulars Sales ... View the full answer