Smart Office Sdn Bhd is selling varieties of chairs and desks for office use. One of...

  

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Smart Office Sdn Bhd is selling varieties of chairs and desks for office use. One of the famous and best seller products is smart chair. The company purchases the products from other factories. The company sells 'smart chair for RM30.00 per unit. The following information is significant for you to prepare the cash budget for Smart Office Sdn Bhd for the second quarter of 2016 Sales (units) Purchases (units) Overheads (RM) 1. 2 4 3. 5. Particulars 6. 7. Additional information: The purchase cost of 'smart chair is RM10.50 per unit. All purchases are on credit and the payments are made two months after purchases a. JUN 2,000 4,000 3,200 2,200 8,000 4,800 30,000 37,000 31,000 31,600 32,000 33,000 JAN FEB 6.000 7.200 6,000 8.000 MAR Required: APR 3.000 4.000 MAY All sales are on credit 60% of the sales are collected in the month of sales while the remainder is collected one month after sales Advertising expenses and office expenses is 7% and 13% of the monthly sales respectively and are paid as it is incurred Overheads include a monthly depreciation of motor van amounting RM11,000. There is a one-month delay in the payment of overheads. The company is expected to receive an interest on fixed deposit amounting to RM6,000 in June 2016. Dividends from investment amounting RM20,000 will be received in May. Opening cash balance for the second quarter is an overdraft of RM12,600. State FOUR (4)objectives of preparing a cash budget Prepare cash budget for the second quarter of 2016. Smart Office Sdn Bhd is selling varieties of chairs and desks for office use. One of the famous and best seller products is smart chair. The company purchases the products from other factories. The company sells 'smart chair for RM30.00 per unit. The following information is significant for you to prepare the cash budget for Smart Office Sdn Bhd for the second quarter of 2016 Sales (units) Purchases (units) Overheads (RM) 1. 2 4 3. 5. Particulars 6. 7. Additional information: The purchase cost of 'smart chair is RM10.50 per unit. All purchases are on credit and the payments are made two months after purchases a. JUN 2,000 4,000 3,200 2,200 8,000 4,800 30,000 37,000 31,000 31,600 32,000 33,000 JAN FEB 6.000 7.200 6,000 8.000 MAR Required: APR 3.000 4.000 MAY All sales are on credit 60% of the sales are collected in the month of sales while the remainder is collected one month after sales Advertising expenses and office expenses is 7% and 13% of the monthly sales respectively and are paid as it is incurred Overheads include a monthly depreciation of motor van amounting RM11,000. There is a one-month delay in the payment of overheads. The company is expected to receive an interest on fixed deposit amounting to RM6,000 in June 2016. Dividends from investment amounting RM20,000 will be received in May. Opening cash balance for the second quarter is an overdraft of RM12,600. State FOUR (4)objectives of preparing a cash budget Prepare cash budget for the second quarter of 2016.

Answer rating: 100% (QA)

Solution Based on the information provided we can prepare the cash budget for Smart Office Sdn Bhd for the second quarter of 2016 as follows Cash Budg... View the full answer