Task 1:

Financial information pertaining to ABC PTD LTD above follows:

• Beginning cash balance is SGD1,800,000
• Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarters sales were SGD 8,400,000. There are no bad debts.
• Purchases of direct materials and labor costs are paid for in the quarter acquired.
• Manufacturing overhead expenses are paid in the quarter incurred.
• Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at SGD 340,000 per quarter, including SGD 90,000 of depreciation.

Required:

Refer to the sales budget prepared in Task 1. Construct a cash budget for ABC PTD LTD for the quarter ending 30^th September 2021.

1 ABC PTD LTD. 2 Sales Budget 3 For the Quarter Ending 30th September 2021 4 POTS PANS Total 5 Budgeted sales in units 60,000 40,000 6 Selling price per unit SGD 100 SGD 125 7 Budgeted sales ** SGD 6,000,000 SGD 5,000,000 SGD 11,000,000 8 9 ** Budgeted sales = Sales in units x Selling price per unit 10 11 ABC PTD LTD. 12 Production Budget in Units 13 For the Quarter Ending 30th September 2021 14 POTS PANS 15 Budgeted sales in units 60,000 40,000 16 Add: Ending inventory 25,000 10,000 17 Total requirement 85,000 50,000 18 Less: Beginning inventory 20,000 8,000 19 Units to be produced 65,000 42,000