Malaysian Agrifood Corporation Berhad reported sales of RM in May and RM

in June. The forecast sales for July, August and September are RM RM and

RM respectively. The beginning cash balance on July is RM and the firm

wishes to maintain a minimum cash balance of RM every month. The total longterm

liabilities of the company is RM Given the following data, prepare a cash budget for

the months of July, August and September.

The firm makes of sales for cash, are collected in the next month, and the

remaining are collected in the second month following sale.

The firm receives other income of RM per month.

The firms actual or expected purchases, all made for cash, are RM

RM and RM for the months of July through September, respectively.

Rent is RM per month.

Wages and salaries are of the previous months sales.

The net income is RM Cash dividends is of the net income and will be

paid in August.

The payment of principal and interest of the longterm liabilities is of the total

longterm liabilities and the payment is due in August.

A cash purchase of equipment costing RM is scheduled in September.

The earnings before taxes is RM The taxes amount is of the earnings

before taxes and it is due in August.