Prepare the following three-months (January to March 2021) budget as required by the bankers. (a) The Cash Collection Schedule for sales (b) The Cash Payment Schedule for purchases (c) The budgeted income statement
Prepare the following three-months (January to March 2021) budget as required by the bankers. (a) The Cash Collection Schedule for sales (b) The Cash Payment Schedule for purchases (c) The budgeted income statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hello. how to answer following questions
![Prepare the following three-months (January to March 2021) budget as required by
the bankers.
(a) The Cash Collection Schedule for sales
(b) The Cash Payment Schedule for purchases
The budgeted income statement
(c)
(d) The budgeted statement of financial position/ Balance Sheet
(e) The cash budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc39f0abb-6451-4911-8aeb-bc84a2482405%2Fc3d1f5f0-e97b-481a-8651-c3d51699fc8a%2F57gkrzm_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the following three-months (January to March 2021) budget as required by
the bankers.
(a) The Cash Collection Schedule for sales
(b) The Cash Payment Schedule for purchases
The budgeted income statement
(c)
(d) The budgeted statement of financial position/ Balance Sheet
(e) The cash budget
![Question
BioGrow Sdn. Bhd is a retail fertilizer to farmers in Jitra. The company has approached
its Bankers to provide funding for next year's operations. In considering their funding
application, a three - month master budget has been requested for review by the
bankers.
As a freelance accounting service provider, you have been approached by the
management as a consultant to prepare the 1st quarter budget for the banker's
consideration for its next year's (2021) operations.
Below is the information as at the end of accounting year of December 2020:
Details
RM
Debtors
23,000
55,000
Bank
Fixed asset at cost
698,000
98,000
48,000
60,000
Accumulated depreciation
Creditors
Operating expenses for December
Sales for December
Ending inventory
Retained earnings
400,000
20,000
120,000
The following additional information was also provided to assist your work.
(i) Depreciation is provided at the rate of 5% on cost of non-current assets per
month.
(i) Closing inventory is expected to increase by RM2000 in January from December
levels. This is expected to increase by the same figure in February from the
projected figure in January. It is expected that in March closing inventory is
desired to be RM26,000
The company makes a profit of 25% on its sales.
(iv) Operating expenses is expected to increase by 10% from that of December in
January and this is projected to increase at the same growth rate until March.
(v) Sales is projected to grow by 15% per month from December until March.
(vi) Debtors figure at the end of the month is desired to be proportional to the sales
values.
(vii) Creditors value for the three months are expected to be as follows:
January - RM50 000; February - RM46,000; March - RM52,000
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc39f0abb-6451-4911-8aeb-bc84a2482405%2Fc3d1f5f0-e97b-481a-8651-c3d51699fc8a%2Fqovzoe_processed.png&w=3840&q=75)
Transcribed Image Text:Question
BioGrow Sdn. Bhd is a retail fertilizer to farmers in Jitra. The company has approached
its Bankers to provide funding for next year's operations. In considering their funding
application, a three - month master budget has been requested for review by the
bankers.
As a freelance accounting service provider, you have been approached by the
management as a consultant to prepare the 1st quarter budget for the banker's
consideration for its next year's (2021) operations.
Below is the information as at the end of accounting year of December 2020:
Details
RM
Debtors
23,000
55,000
Bank
Fixed asset at cost
698,000
98,000
48,000
60,000
Accumulated depreciation
Creditors
Operating expenses for December
Sales for December
Ending inventory
Retained earnings
400,000
20,000
120,000
The following additional information was also provided to assist your work.
(i) Depreciation is provided at the rate of 5% on cost of non-current assets per
month.
(i) Closing inventory is expected to increase by RM2000 in January from December
levels. This is expected to increase by the same figure in February from the
projected figure in January. It is expected that in March closing inventory is
desired to be RM26,000
The company makes a profit of 25% on its sales.
(iv) Operating expenses is expected to increase by 10% from that of December in
January and this is projected to increase at the same growth rate until March.
(v) Sales is projected to grow by 15% per month from December until March.
(vi) Debtors figure at the end of the month is desired to be proportional to the sales
values.
(vii) Creditors value for the three months are expected to be as follows:
January - RM50 000; February - RM46,000; March - RM52,000
1
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