MEIMEI company. It will begin operations on July 1, 2009. The following estimates have been prepared: Sales - cash July (RM) = 5,400 August (RM) = 9,720 September (RM) = 12,000 Sales - credit July (RM) = 12,600 August (RM) = 22,680 September (RM) = 28,000 Purchases – cash July (RM) = 2,000 August (RM) =3,000 September (RM) = 4,000 Purchases - credit July (RM) = 15,000 August (RM) = 16,000 September (RM) = 17,000 30% of credit sales are paid in the month of sale, the balance is payable in the month following sale. The initial cash contributions are RM20,000. Fixed overheads are expected to be RM5,000 per month, including RM1,000 depreciation. 50% of the overheads are paid in the month incurred and the balance are paid in the following month. You are to require to: (a) Prepare a monthly cash budget, in columnar form, showing the bank balance at the end of each month, for July, August and September 2009.
MEIMEI company. It will begin operations on July 1, 2009. The following estimates have been prepared: Sales - cash July (RM) = 5,400 August (RM) = 9,720 September (RM) = 12,000 Sales - credit July (RM) = 12,600 August (RM) = 22,680 September (RM) = 28,000 Purchases – cash July (RM) = 2,000 August (RM) =3,000 September (RM) = 4,000 Purchases - credit July (RM) = 15,000 August (RM) = 16,000 September (RM) = 17,000 30% of credit sales are paid in the month of sale, the balance is payable in the month following sale. The initial cash contributions are RM20,000. Fixed overheads are expected to be RM5,000 per month, including RM1,000 depreciation. 50% of the overheads are paid in the month incurred and the balance are paid in the following month. You are to require to: (a) Prepare a monthly cash budget, in columnar form, showing the bank balance at the end of each month, for July, August and September 2009.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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MEIMEI company. It will begin operations on July 1, 2009. The following estimates have been prepared:
Sales - cash
- July (RM) = 5,400
- August (RM) = 9,720
- September (RM) = 12,000
Sales - credit
- July (RM) = 12,600
- August (RM) = 22,680
- September (RM) = 28,000
Purchases – cash
- July (RM) = 2,000
- August (RM) =3,000
- September (RM) = 4,000
Purchases - credit
- July (RM) = 15,000
- August (RM) = 16,000
- September (RM) = 17,000
- 30% of credit sales are paid in the month of sale, the balance is payable in the month following sale.
- The initial cash contributions are RM20,000.
- Fixed
overheads are expected to be RM5,000 per month, including RM1,000depreciation. 50% of the overheads are paid in the month incurred and the balance are paid in the following month.
You are to require to:
(a) Prepare a monthly
end of each month, for July, August and September 2009.
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