(x) Interest on accumulated loan is at 18 percent annual interest and paid in the following month.(xi) Beginning balance is RM38,000 and a minimum of RM255,000 must be maintained at all times.In preparation of the meeting, the management has assigned finance team and lead by Mr. Hamidito prepare the cash budget for the fourth quarter of 2021. (a)faced tough situation to sustain their financial cash flow. During the first quarter of 2021, therevenue of Denai Holdings has decreased tremendously, therefore, the company decided to have aboard meeting in next month. The following is a projected sales of Denai Holdings for the third andfourth quarter of 2021:The global economic has been affected by Covid19 pandemic and the businessesMonthSales (RM)1,500,000AugustSeptember1,600,0001,650,0001,630,0002,109,000OctoberNovemberDecemberAdditional information:(1) The company is able to makes 20 percent cash sale, 50 percent will be collected in the monthfollowing sales and 30 percent will be collected in the second month following sales.(ii) Every end of quarter, the firm will receive a dividend of RM2,850 from investment in property.(iii) Purchases are 60 percent of sales. 42 percent of purchases are paid one month before thesales occur and the remaining balance paid in the following month.(iv) The company pays RM365,080 each month for wages.(v) Administrative expenses is RM90,700 each month.(vi) Tax repayment of RM80,900 are made at the beginning of each quarter.(vii) Interest on term loan of RM59,240 is payable at the beginning of each quarter.(viii) In November, the firm has to renew its insurance policy and has to pay RM65,980 for thatpurpose.(ix) The firm has bought an office vehicle in 2019 and will be depreciated by RM2,890 per year.

Month Sales(RM) Purchases(RM) August 1,500,000 960,000 (60%*1,600,000) September 1,600,000…

(a) faced tough situation to sustain their financial cash flow. During the first quarter of 2021, the revenue of Denai Holdings has decreased tremendously, therefore, the company decided to have a board meeting in next month. The following is a projected sales of Denai Holdings for the third and fourth quarter of 2021: The global economic has been affected by Covid19 pandemic and the businesses

(a) faced tough situation to sustain their financial cash flow. During the first quarter of 2021, the revenue of Denai Holdings has decreased tremendously, therefore, the company decided to have a board meeting in next month. The following is a projected sales of Denai Holdings for the third and fourth quarter of 2021: The global economic has been affected by Covid19 pandemic and the businesses

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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