Platinum Hygiene Sdn Bhd is a manufacturing company that produces disposable face mask. Given below is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Platinum Hygiene Sdn Bhd is a manufacturing company that produces disposable face mask. Given below is the operational budget for the company for the first quarter of 2021. 1. 2. 3. 4. 5. 6. 7. JAN FEB 3,000 3,200 80,000 100,000 MAR 3,400 120,000 Month Sales (units) Purchases of materials (RM) The average selling price of disposable face mask is RM50 per box. The collection of the monthly sales is as follows: • 50% of the sales are collected during the month of sale and are given a cash discount of 5%. • the remaining 50% is collected one month after the sales. All purchases of materials are on credit terms. 40% are paid during the month of purchase and the balances are to be paid on the subsequent month. Administrative expenses are budgeted at 15% of monthly sales amount and are paid in the same month as they are incurred. Annual depreciation of RM24,000 is included in the administrative expenses. The depreciation is deemed to accrue evenly over the year. Maintenance expenses is budgeted at the rate of 2% of monthly sales and these expenses are paid within the same month. The company plans to purchase a new machine costing RM50,000 in January 2021. 20% is payable during month of purchase. The balance will be paid in four monthly equal installments starting from February 2021. Dividend from an investment is scheduled to be received at the end of March 2021 that amounted to RM13,000. 8. Due to the current economic situation the bank balance as at 31 January 2021 is expected to be in a deficit figure of RM48,750. Required: Prepare a cash budget for Platinum Hygiene Sdn Bhd for the months of February and March 2021. (8 marks) Platinum Hygiene Sdn Bhd is a manufacturing company that produces disposable face mask. Given below is the operational budget for the company for the first quarter of 2021. 1. 2. 3. 4. 5. 6. 7. JAN FEB 3,000 3,200 80,000 100,000 MAR 3,400 120,000 Month Sales (units) Purchases of materials (RM) The average selling price of disposable face mask is RM50 per box. The collection of the monthly sales is as follows: • 50% of the sales are collected during the month of sale and are given a cash discount of 5%. • the remaining 50% is collected one month after the sales. All purchases of materials are on credit terms. 40% are paid during the month of purchase and the balances are to be paid on the subsequent month. Administrative expenses are budgeted at 15% of monthly sales amount and are paid in the same month as they are incurred. Annual depreciation of RM24,000 is included in the administrative expenses. The depreciation is deemed to accrue evenly over the year. Maintenance expenses is budgeted at the rate of 2% of monthly sales and these expenses are paid within the same month. The company plans to purchase a new machine costing RM50,000 in January 2021. 20% is payable during month of purchase. The balance will be paid in four monthly equal installments starting from February 2021. Dividend from an investment is scheduled to be received at the end of March 2021 that amounted to RM13,000. 8. Due to the current economic situation the bank balance as at 31 January 2021 is expected to be in a deficit figure of RM48,750. Required: Prepare a cash budget for Platinum Hygiene Sdn Bhd for the months of February and March 2021. (8 marks)
Expert Answer:
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
Students also viewed these accounting questions
-
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price ................ $150 Units in beginning inventory...
-
Year 1 2 3 4 5 6 7 A coal mining company is expanding its existing operation. The company expects that it will experience an increasing stripping ratio scenario in the expansion area, and with...
-
MamakMaju Sdn Bhd is a manufacturing company and closes its accounts annually on 31 December. The company acquired a factory building for RM1,300,000 during the year of assessment 2018. In 2019, the...
-
In Exercises find the values of x for which the series converges. n=0 (x + 1)n n!
-
The digital system shown in figure uses a six-bit (including sign) fixed-point two?s-complement A/D converter with rounding, and the filter H(z) id implemented using eight-bit (including sign)...
-
From the following partial data, prepare an income statement showing departmental income before tax along with net income for Jay's Corporation for the year ended December 31, 201X. Net Sales,...
-
A hotel group prepares financial statements on a quarterly basis. The senior management is reviewing the performance of one hotel and making plans for next year. The managers have in front of them...
-
PEI Potatoes processes potatoes into potato cuts at its highly automated plant. For many years, it processed potatoes for only the retail consumer market where it had a superb reputation for quality....
-
Which method for calculating a credit card balance does not take into account the purchases or the payments made during the current billing cycle? A. Subsequent Balance Method B. Previous Balance...
-
Details of a company's insurance policy are shown below: Premium for year ended 31 March 2008 paid April 2007 Premium for year ending 31 March 2009 paid April 2008 $25,920 $28,800 What figures should...
-
[Pricing] What is a problem/consequence with pure-cost and profit-based pricing? O Account for economies of scale Focus only on external factors O Assume that pricing varies throughout the product...
-
Please explain the challenges and future scopes of Vlog endorsement marketing? Please don't copy and paste from the internet source.
-
The following costs were incurred by a manufacturing company: Materials used in product $120,700 Depreciation on plant 6,440 Property taxes on plant 890 Labour costs of assembly-line workers 150,300...
-
The mouthpiece of a team applies 8 3 8 of fertilizer in 3 8 seconds. Calculate the volume of mixture that comes out of the mouthpiece in gallons per min. Response to 3 decimal spaces
-
Calculate profit per discharge for Big Green Medical Center, given the following data: Patient days = 22030 Inpatient discharges = 4561 Inpatient revenue per discharge = 5924 Inpatient expense per...
-
A 2 0 0 kg car is parked atop a roller coaster which is 2 0 m tall. It is resting against an idealspring which is compressed 0 . 5 0 m from its resting position. The spring constant is 5 0 0 0 N / m...
-
View Policies Current Attempt in Progress Record the following transactions on the books of Swifty Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount...
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
Consider a different (fictitious) study to compare two treatments for the relief of heartburn. This new study involves a two-period "cross-over" design in which each subject is given two...
-
This problem refers to the 1990 Census data presented in Problem 19 of Chapter 5 and in Problem 14 of Chapter 8. Use the computer output from Problem 14 of Chapter 8, along with the additional output...
-
The following table gives rat body weights (in grams) and latency to seizure (in minutes), following injection of 40 mg/kg of body weight of metrazol. a. Draw a scatter diagram on graph paper, with...
-
What is the value added ratio? What does a high (low) value added ratio indicate?
-
What does a low average reserves per well ratio indicate?
-
Lomax Company reported the following costs on its financial statements (in thousands): REQUIRED: Using the reserve disclosure for Lomax Company in problem 13 and the data presented in this problem,...
Study smarter with the SolutionInn App