Reference no: EM132600533

The following information shows the expected sales and cash disbursements for Suka Suke Products for November and December 2017and the first quarter of 2018.

Details                                 Nov'17                Dec'17            Jan'18           Feb'18             Mar'18

                                        RM                   RM                      RM                  RM               RM

Sales                                 25,000          20,000              30,000        35,000           25,000

Material purchases                    10,000      8,000                 12,000         15,000           9,000

Other cash expenses:

Salaries and wages                 7,000            7,000                 7,000            7,000            7,000

Rent and utilities                      8,000           8,000                  8,000            8,000            8,000

Misc.expenses                           6,000           12,500                 12,700          12,100           6,300

Additional information:

1. The company expected to collect 60% of their sales in the month of sales, 30% in the second month and the remaining 10% in the following month.

2. The company usually pays for 70% of their materials purchases in the month of purchase and the remaining 30% in the following month.

3. The company has decided to maintain a minimum cash balance of RM20,000. Cash on hand at 1 January 2018 is RM25,000 and there are no loans.

Required:

Question 1: Produce a cash budget for the first quarter of 2018. Please shows all related working.