Question: please dont give the same answer as hwat previous people have given. QUESTION 1 (25 MARKS) The following information relates to Star Manufacturing Sdn Bhd

please dont give the same answer as hwat previous people have given. please dont give the same answer as hwat previous people have given.

QUESTION 1 (25 MARKS) The following information relates to Star Manufacturing Sdn Bhd for year 2021. Month Sales (RM) 40,000 50,000 35,000 January February March April May June Purchases Overheads (RM) (RM) 30,000 10,000 12.000 25,000 16,000 20,000 17,000 30,000 19,000 30,000 17,000 60,000 70,000 90,000 70,000 50,000 10,000 12,000 July August September 12,000 50,000 40,000 20,000 15,000 10,000 Additional information: 1. Analysis of sales 20% of the monthly sales are for cash and 80% are sold on credit. 60% of the credit sales will be collected one month after sales, and the balance will be settled by debtors two months after sales. 2. Analysis of purchases All purchases are on credit. Payments for the purchases will be 40% of the month of purchases, and the balanced will be settled one month after purchases. 3. Analysis of overheads The overheads include RM2,000 monthly depreciation on office equipment. The payment of overheads will be settled at the end of the month. 4. Other related costs Donation of RM800 to be made in May. Salaries and wages are RM25,000 per month. The company expected to hire two (2) additional workers in June at a salary of RM1,500 per month each. The salaries and wages are paid on the fourth week of the month. Page 2 of 3 A new machine costing RM30,000 will be purchased in April. A 20% deposit will be paid immediately upon purchase. The remaining balances will be paid in the following month after purchase. 5. The closing balances at the end of first quarter is RM100,000. Required: (a) Prepare a monthly cash budget for the second quarter of 2021 for Star Manufacturing Sdn Bhd. (25 marks)

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