September 2002: Section A. Question 2 Based on the following information, prepare a cash budget for NILAM Corporation for the third quarter 2002. a. April May June RM 160,000 120,000 140,000 RM July 170,000 August 185,000 September 190,000 October 205,000 The collection of sales is as follows: 40 percent is collected in the month of sales 40 percent is collected one month after sales 15 percent is collected two months after sales b. 5 percent is uncollected Purchases of raw materials are 80 percent of sales and are made one month in advance. Payments are made equally in the two months after purchase. c. Operating expenses will be 10 percent of the monthly sales. d. e. f. Other fixed monthly expenses: Rental RM 4,500 Salaries and wages RM 25,000 Depreciation Insurance RM 12,500 RM 2,000 Tax repayment of RM 8,000 is made at the beginning of each quarter. A quarterly dividend of RM 30,000 will be received from Mutiara Corporation in March, June, August and December. g. Interest on RM 50,000 loan at 12 percent is payable every month.. h. Cash balance in June 30, 2002 is RM 50,000 and the company maintains minimum cash requirement of RM 30,000. 20 marks