Question: Task 2: CLO3 Question Financial information pertaining to Pedro Sdn. Bhd. as follows: Beginning cash balance is $1,800,000 Sales are on credit and are collected
Task 2: CLO3
Question
Financial information pertaining to Pedro Sdn. Bhd. as follows:
Beginning cash balance is $1,800,000
Sales are on credit and are collected 50 percent in the current period and the remainder in the next
period. Last quarter's sales were $8,400,000. There are no bad debts.
Purchases of direct materials and labour 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 $340,000 per quarter, including $90,000 of depreciation.
Required:
Refer to the sales budget prepared in Task 1. Construct a cash budget for Pedro SdnBhd for the first
quarter of 2021.
Sales Budget in Task 1
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