Don't give answer in image format QUESTION 1Kanken Sdn.Bhd. owned by Encik Adib is considering a small business proposal as their secondproject starting next year. In order to forecast the first three months (January, February and March2022) cash flows of the business, he has asked you to help him with the following information.Sales:1.2.3.4.5.6.7.8.9.10.11.12.2021DecemberRM20,000Variable cost for each unit:MaterialLaborOverheadProduction (in unit):2021December1,200JanuaryRM60,000RM26RM8RM2Required:a)b)January1,400FebruaryRM70,000RM 362022February1,600MarchRM80,0002022March2,000AprilRM70,000April1,600Suppliers of materials are paid one month after the material is used in production.Wages are paid in the month when output is produced.Variable overhead is paid in the month when the cost incurred.A new office equipment is scheduled for January costing RM5,000 and this is to be paid inMarch.Customers are expected to pay 50% on cash, 30% in the second month and 15% in thefollowing month. The reminder is assumed to be a bad debt.Selling and administrative expenses are budgeted at RM20,000 per month. Of the fixedamount, RM10,000 each month is depreciation expenses.An old machine is to be sold for cash in February for RM9,000.The cash account contained RM20,000 at the end of 31 December 2021. En Adib feelsthat this represents a minimum balance that must be maintained.The company has an agreement with a local bank that's allows the company to borrowand repay in increments of RM1,000 up to a total loan balance of RM100,000. The interestrate on these loans is 2.5% per annum. The company would, as far as it is able, repay theloan plus accumulated interest. At present, the company has no loans outstanding.Prepare cash collection for the month of January, February and March 2016.Prepare a cash budget for the month of January, February and March 2016.1

A Cash Budget depicts the cash receipts and cash payments for the period. It helps the company to…

Kanken Sdn.Bhd. owned by Encik Adib is considering a small business proposal as their second project starting next year. In order to forecast the first three months (January, February and March 2022) cash flows of the business, he has asked you to help him with the following information. 1. Sales: 2. 2021 December RM20,000 Variable cost for each unit: Material Labor February January RM60,000 RM70,000 RM26 RM8 2022 2 RM36 March RM80,000 April RM70,000

Kanken Sdn.Bhd. owned by Encik Adib is considering a small business proposal as their second project starting next year. In order to forecast the first three months (January, February and March 2022) cash flows of the business, he has asked you to help him with the following information. 1. Sales: 2. 2021 December RM20,000 Variable cost for each unit: Material Labor February January RM60,000 RM70,000 RM26 RM8 2022 2 RM36 March RM80,000 April RM70,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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