The Kejore Company has the following information available:

Month                    Budgeted Sales

May                            RM84,000

June                              72,000

July                                74,000

August                          76,000

September                   78,000

October                        78,000

Budgeted Operating Expenses Per Month

Wages                                         RM12,600

Advertising                                       27,200

Depreciation                                     19,000

Rent                                                  20,400

Freight-out                              20% of sales

Sales commission                      5% of sales

The cost of goods sold rate is 65% and the desired ending inventory level is 25% of the next month's cost of sales. Fifty percent of purchases will be paid on the month purchases and remaining in next month.

Credit sales are 80% of total sales. Collections of credit sales are 40% in the month of sale, 50% in the month after sale and 10% two months after sale. No uncollectible accounts are expected.

Kejore Company wants to maintain a minimum cash balance of RM10, 000. Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Interest of 1% per month is paid in cash at the end of each month debt is outstanding. Borrowing and repayment is carried out in multiples of RM1, 000. Cash balance at 1 July is RM200, 000. 

Required:

a). Prepare a schedule of cash collections for July, August and September. 

b). Prepare a purchases and cost of goods sold budget for July, August and September. 

c). Prepare a schedule of cash disbursements for operating expenses for July, August and September. All cash expenses are paid when incurred. 

d). Prepare a cash budget for July, August and September.