The followings the cash budget for Kessavan Enterprise for the last six months of 2023. The minimum cash balance requirement is RM10,000 each month. Based on the cash budget, suggest TWO (2) actions that Kessavan can take to ensure its business survival. Explain your answers.

Transcribed Image Text:

Cash Receipts Sales Cash sales First month TOTAL COLLECTIONS Cash disbursement: Raw materials purchase Rental Operation expenditures Tax Interest Total disbursement Net monthly change (+) Beginning cash balance. Total financing needed Ending Cash Balance Cumulative borrowing July August September October November December RM12,330 |RM12,430| RM11,110 | RM15,690 | RM10,450 | RM17,600 RM6,270 RM10,560 RM7,398 RM7,458 RM6,666 RM9,414 RM6,096 RM4,932 RM4,972 RM4,444 RM6,276 RM13,494 RM12,390 RM11,638 RM13,858 RM12,546 RM14,740 RM4,180 RM5,200 RM6,050 RM4,200 RM4,100 RM4,500 RM4,200 RM3,000 RM3,000 RM3,000 RM3,000 RM3,000 RM3,000 RM5,240 RM5,240 RM5,240 RM5,240 RM5,240 RM5,240 RM10,000 RM10,000 RM111 RM22,551 RM103 RM12,440 RM12,340 RM23,440 RM14,393 RM50 -RM11,802 -RM535 -RM302 -RM7,811 | RM11,454| RM11,504 | RM10,000 | RM10,000 | RM10,000 RM10,298 RM535 RM302 RM7,811 RM10,000 | RM10,000 | RM10,000 | RM10,000 RM10,298 | RM10,833 RM11,135 RM18,946 RM1,054 RM10,400 RM11,454 RM108 RM12,848 | RM11,504| Cash Receipts Sales Cash sales First month TOTAL COLLECTIONS Cash disbursement: Raw materials purchase Rental Operation expenditures Tax Interest Total disbursement Net monthly change (+) Beginning cash balance. Total financing needed Ending Cash Balance Cumulative borrowing July August September October November December RM12,330 |RM12,430| RM11,110 | RM15,690 | RM10,450 | RM17,600 RM6,270 RM10,560 RM7,398 RM7,458 RM6,666 RM9,414 RM6,096 RM4,932 RM4,972 RM4,444 RM6,276 RM13,494 RM12,390 RM11,638 RM13,858 RM12,546 RM14,740 RM4,180 RM5,200 RM6,050 RM4,200 RM4,100 RM4,500 RM4,200 RM3,000 RM3,000 RM3,000 RM3,000 RM3,000 RM3,000 RM5,240 RM5,240 RM5,240 RM5,240 RM5,240 RM5,240 RM10,000 RM10,000 RM111 RM22,551 RM103 RM12,440 RM12,340 RM23,440 RM14,393 RM50 -RM11,802 -RM535 -RM302 -RM7,811 | RM11,454| RM11,504 | RM10,000 | RM10,000 | RM10,000 RM10,298 RM535 RM302 RM7,811 RM10,000 | RM10,000 | RM10,000 | RM10,000 RM10,298 | RM10,833 RM11,135 RM18,946 RM1,054 RM10,400 RM11,454 RM108 RM12,848 | RM11,504|

Answer rating: 100% (QA)

I will discuss in full the two activities that I advised for Kessavan to secure its company sustainability based on the cash budget Reduce the raw mat... View the full answer