(a) next quarter. The following forecast sales for the year of 2021: Sakura Group has been engaged in the process of forecasting its financing needs over the Month Sales May June July August September October RM775,000 RM970,000 RM880,000 RM1,375,000 RM1,633,000 RM1,890,000 The company's sales of 40 percent is collected in the month of sales and the remaining balance will be collected in the following months after sales. Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month in advance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following month and the remaining is never collected.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
(a)
next quarter. The following forecast sales for the year of 2021:
Sakura Group has been engaged in the process of forecasting its financing needs over the
Month
May
Sales
RM775,000
June
July
August
September
October
RM970,000
RM880,000
RM1,375,000
RM1,633,000
RM1,890,000
The company's sales of 40 percent is collected in the month of sales and the remaining balance will
be collected in the following months after sales.
Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month in
advance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following month
and the remaining is never collected.
Additional information:
(1i) Interest income of RM10,500 on marketable securities will be received in August.
(ii) Other income of RM1,650 will receive every end of quarter.
(iii) The firm paid worker wages based on 5 percent of sales in the month.
(iv) The utilities is expected at 2 percent of sales in the month of the sales.
(v) Monthly rental expenses is RM33,030.
(vi) The cost of new asset is RM225,500 and pay in cash in July. This new asset will depreciate
RM1,550 per month.
Transcribed Image Text:(a) next quarter. The following forecast sales for the year of 2021: Sakura Group has been engaged in the process of forecasting its financing needs over the Month May Sales RM775,000 June July August September October RM970,000 RM880,000 RM1,375,000 RM1,633,000 RM1,890,000 The company's sales of 40 percent is collected in the month of sales and the remaining balance will be collected in the following months after sales. Sakura's purchase raw material equal to 82 percent of sales and its makes purchases a month in advance of sales. 60 percent of purchases are cash, and 35 percent is paid in the following month and the remaining is never collected. Additional information: (1i) Interest income of RM10,500 on marketable securities will be received in August. (ii) Other income of RM1,650 will receive every end of quarter. (iii) The firm paid worker wages based on 5 percent of sales in the month. (iv) The utilities is expected at 2 percent of sales in the month of the sales. (v) Monthly rental expenses is RM33,030. (vi) The cost of new asset is RM225,500 and pay in cash in July. This new asset will depreciate RM1,550 per month.
(vii) The company will pay tax of RM55,090 in August and property tax of RM65,800 in September.
(viii) Equipment expenses are RM75,080 are paid equally twice per year on February and August.
(ix) A dividend of RM49,380 will be paid at the beginning of each quarter.
(x) Beginning cash balance for the budget period is RM10,000 with a minimum cash balance of
RM50,000 and increase to RM155,000 in August and RM309,700 in September onwards.
(xi) Interest on accumulated loan is at 15 percent annual interest and is paid in the following month.
Prepare a monthly cash budget of quarter 3 in 2021 for Sakura Group.
Transcribed Image Text:(vii) The company will pay tax of RM55,090 in August and property tax of RM65,800 in September. (viii) Equipment expenses are RM75,080 are paid equally twice per year on February and August. (ix) A dividend of RM49,380 will be paid at the beginning of each quarter. (x) Beginning cash balance for the budget period is RM10,000 with a minimum cash balance of RM50,000 and increase to RM155,000 in August and RM309,700 in September onwards. (xi) Interest on accumulated loan is at 15 percent annual interest and is paid in the following month. Prepare a monthly cash budget of quarter 3 in 2021 for Sakura Group.
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Financial Policy and Growth
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education