UESTION 2 MIS Trading forecasts unit sales for the next few months are as follows: Month Unit Sales 1,000 January 2011 February 1,300 1,600 b) c) d) e) () March April 9) May June July August 1,700 1,900 1,100 900 900 Selling price per unit is RM200. 40% of each month's sales are in cash and the remaining balance are on credit. The cash sales and 20% of credit sales are collected in the month of sales, 65% in the month following sales, and 15% in the second month following sales. Cash dividend of RM5,000 will be received in June. Raw materials cost equal 40% of sales, and they are purchased on credit one month in advance of sales. 30% of purchases are paid in the month of purchase and the remaining 70% are paid in the following month Direct wages cost are RMS per unit and are paid in the month incurred. Quarterly tax payments of RM8,000 each are due in March and June. Fixed monthly expenses: 1. Rent is RM20,000 2. Selling expenses are RM2,000 plus RM1.50 per unit sold. 3. Depreciation is RM12,000 The company has an ending cash balance of RM22,000 in March and wishes to maintain a monthly minimum cash balance of RM10,000. Prepare a cash budget for MIS Trading for the second quarter of 2012.