The following cash flow and costs projection is available for the last 6-months of 2022: Quarter...

 

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The following cash flow and costs projection is available for the last 6-months of 2022: Quarter 3 Quarter 4 Cash collection from customer RM35,500 RM37,500 Cash payment for supplier RM64,034 RM67,202 Direct labour costs RM16,110 RM16,965 Manufacturing overhead Selling and administrative expense RM106,432 RM106,508 RM9,630 RM9,750 Upon discussion with Mimi, you have drafted the following key cash transactions for your budgeting consideration: 1. The expected cash balance at the start of Quarter 3 is at RM300,000. 2. All direct labour costs, manufacturing overhead and selling and administrative expenses are expected to be paid in cash in the quarter incurred. 3. The machinery purchased at RM20,000 for the production of the Asian BBQ is expected to be paid as two-equal cash instalments in Quarter 3 and Quarter 4 respectively. 4. The company would like to maintain a minimum cash balance of RM100,000 every quarter. Any excess of cash will be used to repay borrowings and interests. Required: Show all workings on a Microsoft Excel spreadsheet. Marks are granted based on the correct answer, and, the relevant Excel cell-reference, formulae and/or functions used. Prepare the Cash Budget for the last 6-months of 2022. Show the ending cash balance for each quarter. The following cash flow and costs projection is available for the last 6-months of 2022: Quarter 3 Quarter 4 Cash collection from customer RM35,500 RM37,500 Cash payment for supplier RM64,034 RM67,202 Direct labour costs RM16,110 RM16,965 Manufacturing overhead Selling and administrative expense RM106,432 RM106,508 RM9,630 RM9,750 Upon discussion with Mimi, you have drafted the following key cash transactions for your budgeting consideration: 1. The expected cash balance at the start of Quarter 3 is at RM300,000. 2. All direct labour costs, manufacturing overhead and selling and administrative expenses are expected to be paid in cash in the quarter incurred. 3. The machinery purchased at RM20,000 for the production of the Asian BBQ is expected to be paid as two-equal cash instalments in Quarter 3 and Quarter 4 respectively. 4. The company would like to maintain a minimum cash balance of RM100,000 every quarter. Any excess of cash will be used to repay borrowings and interests. Required: Show all workings on a Microsoft Excel spreadsheet. Marks are granted based on the correct answer, and, the relevant Excel cell-reference, formulae and/or functions used. Prepare the Cash Budget for the last 6-months of 2022. Show the ending cash balance for each quarter.

Answer rating: 100% (QA)

Cash Budget For last 6 Months of 2022 Quarter Quarter Particulars 3 Opening Balance 300000 100... View the full answer