QUESTION $3$

Nesam Sdn Bhd has been engaged in the process of forecasting its financing needs over the next quarter

and has made the following forecasts of planned cash receipts and disbursements:

The monthly sales for the year of $2023$ :

a$)60\%$ of credit sales are realized in the month following the sale and the remainder in the second

month following.

b$)$ The raw materials are $55\%$ of the current sales and Creditors are paid in the month following the

month of purchases.

c$)$ The wages and salaries are paid based on $10\%$ of sales in the month. The utility for the firm is $5\%$ of

sales in the month of their incurrence.

d$)$ Furthermore, the monthly rent expenses are RM$8,000$ and Office supplies RM$800.$

e$)$ RM$5,000$ tax payments are to be made in the first month of each quarter.

f$)$ A $5\%$ annual interest on a RM$400,000$ term loan will be paid monthly.

g$)$ The beginning cash balance for the budget period is RM$90,000$ with a minimum cash balance of

RM$45,000$ and an increase to RM$60,000$ in August and RM$75,000$ in September.

h$)$ Any short$-$term financing needed to maintain the minimum cash balance should be paid off the month

after the financing month with an annual interest rate of $15\%$ per annum.

Prepare a monthly cash budget for the three$-$month period ended $30$th June $2023.$

$(30$ marks$)$