Question 4Razali intends to run a laundry shop on 1 January 2020 with an initial capital of RM32,480 consistingof:RMCash in bank1 980Cash in hand500Machine30,000Razali plans to apply for a loan of RM12,000 in February 2020 at an interest rate of 8% per annum.The loan will be repaid monthly for 4 years, starting the following month.The estimated receipts and payments for his business are as follows:i) Revenue from laundry services for January 2020nwas RM8,900. This revenue is expected toincrease 10% each month from the following month.ii) The total purchase of detergents by month is as follows:RM1,500JanuaryFebruary1,800March2,16060% of the purchase of detergent will be paid in cash and the balance will be paid in the followingmonth.iii) The monthly rent is RM1,200.iv) Utility budget:RMJanuaryFebruary860970March1,120v) The business plans to buy five units of dryers and two units of washing machines at a total cost ofRM40,000 in March. An advance payment of 60% will be made and the balance paid in full in thefollowing month.Required:On behalf of Razali, prepare a cash budget for the three months ending 31 March 2020.

In a cash budget, only the cash outflows and inflows will be recorded. Other outflows and inflows…

Answered: On behalf of Razali, prepare a cash…

Business

Accounting

On behalf of Razali, prepare a cash budget for the three months ending 31 March 2020.

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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