Case Study The company is preparing monthly cash budgets for the month of April and May...

  

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Case Study The company is preparing monthly cash budgets for the month of April and May 20X2. The following data are available from the records of the company. Sales Raw Materials purchases Direct labour Manufacturing overhead Students are required to prepare a cash budget for April and May 20X2 for Anas & Co. costs Selling and administrative expenses. . • RM 250,000 . 115,000 65,000 35,000 45,000 Other pertinent information are as follows: Sales: March 20X2, RM250,000. Purchases of raw materials: March 20X2, RM195,000 RM 225,000 130,000 The company has the following business policies: Collection from customers is expected to be 60% of the sales in the month of sale and 40% in the month of following the sale. The company pay cash for 30% of the raw materials purchase in the month of purchases and the balance is due in the month following in the purchase. All other items besides these two are paid in the month they are incurred. 70,000 40,000 55,000 . . Other receipts: April: Donation received, RM2,000.00 o May: Proceeds from the disposal of used equipment, RM2,500.00 Other payments: April: Debt repaid, RM 10,000.00 o May: Purchase of an equipment, RM5,500.00 The company's cash balance on 1 April 20X2 is estimated to be RM30,000.00. the company must maintain a minimum cash balance of RM25,000.00 in the end of May 20X2. (20 marks) Case Study The company is preparing monthly cash budgets for the month of April and May 20X2. The following data are available from the records of the company. Sales Raw Materials purchases Direct labour Manufacturing overhead Students are required to prepare a cash budget for April and May 20X2 for Anas & Co. costs Selling and administrative expenses. . • RM 250,000 . 115,000 65,000 35,000 45,000 Other pertinent information are as follows: Sales: March 20X2, RM250,000. Purchases of raw materials: March 20X2, RM195,000 RM 225,000 130,000 The company has the following business policies: Collection from customers is expected to be 60% of the sales in the month of sale and 40% in the month of following the sale. The company pay cash for 30% of the raw materials purchase in the month of purchases and the balance is due in the month following in the purchase. All other items besides these two are paid in the month they are incurred. 70,000 40,000 55,000 . . Other receipts: April: Donation received, RM2,000.00 o May: Proceeds from the disposal of used equipment, RM2,500.00 Other payments: April: Debt repaid, RM 10,000.00 o May: Purchase of an equipment, RM5,500.00 The company's cash balance on 1 April 20X2 is estimated to be RM30,000.00. the company must maintain a minimum cash balance of RM25,000.00 in the end of May 20X2. (20 marks)

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Question Anas Co Cash Budget Opening balance Recerpts Collection from Customers Donation proc... View the full answer