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QUESTION JTET Sdn Bhd is an automotive manufacturing company located at Hicom Industrial Park. Currently, the owner, Mr Arifin is considering to open a new branch that is located at Pontian, Johor. He has asked you to help him to prepare cash budget over the first three months of operation, starting October 2021. The following information is available: Octobe Novembe Decembe Sales Purchase 22,000 24,100 Overhead 60,000 66,000 69.000 32,200 Additional 2,650 2,500 3.600 Information: • Mr Arifin is expected to contribute RM 100,000 cash as capital in order to set up the new branch. • In October, Mr Airifin will need to pay a rental deposit of RM10,000 and monthly rental of RM5,000 for the factory building. • 1/3 of the sales are cash sales. Total credit sales are expected to be paid: • 40% in the month of sales 60% one month after sales • Overhead includes RM 650 depreciation per month and paid one month in arrears. • All purchases payment to suppliers will be paid in two equal instalments. The first instalment will be paid in the month of purchase and the remaining in the month after. • Three workers will be employed with a fixed salary of RM 2,000 per person. All of their salaries will be paid in the first day of the following month. Interest on fixed deposit is expected to be received in December amounting RM 3,000. • A machinery costing RM 90,000 will be bought in October 2021, where RM 30,000 will be paid in the month of purchase. The balance will be paid in three months equal instalment. The machine will be depreciated 10% per annum using straight line method. Required: a) Prepare a cash budget for the company for the month of October, November and December 2021.

QUESTION JTET Sdn Bhd is an automotive manufacturing company located at Hicom Industrial Park. Currently, the owner, Mr Arifin is considering to open a new branch that is located at Pontian, Johor. He has asked you to help him to prepare cash budget over the first three months of operation, starting October 2021. The following information is available: Octobe Novembe Decembe Sales Purchase 22,000 24,100 Overhead 60,000 66,000 69.000 32,200 Additional 2,650 2,500 3.600 Information: • Mr Arifin is expected to contribute RM 100,000 cash as capital in order to set up the new branch. • In October, Mr Airifin will need to pay a rental deposit of RM10,000 and monthly rental of RM5,000 for the factory building. • 1/3 of the sales are cash sales. Total credit sales are expected to be paid: • 40% in the month of sales 60% one month after sales • Overhead includes RM 650 depreciation per month and paid one month in arrears. • All purchases payment to suppliers will be paid in two equal instalments. The first instalment will be paid in the month of purchase and the remaining in the month after. • Three workers will be employed with a fixed salary of RM 2,000 per person. All of their salaries will be paid in the first day of the following month. Interest on fixed deposit is expected to be received in December amounting RM 3,000. • A machinery costing RM 90,000 will be bought in October 2021, where RM 30,000 will be paid in the month of purchase. The balance will be paid in three months equal instalment. The machine will be depreciated 10% per annum using straight line method. Required: a) Prepare a cash budget for the company for the month of October, November and December 2021.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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QUESTION JTET Sdn Bhd is an automotive manufacturing company located at Hicom Industrial Park. Currently, the owner, Mr Arifin is considering to open a new branch that is located at Pontian, Johor. He has asked you to help him to prepare cash budget over the first three months of operation, starting October 2021. The following information is available: Octobe Novembe Decembe Sales Purchase Overhead 60,000 66,000 22,000 24,100 69,000 32,200 2,650 2,500 3,600 Additional Information: • Mr Arifin is expected to contribute RM 100,000 cash as capital in order to set up the new branch. • In October, Mr Airifin will need to pay a rental deposit of RM10,000 and monthly rental of RM5,000 for the factory building. • 1/3 of the sales are cash sales. Total credit sales are expected to be paid: • 40% in the month of sales • 60% one month after sales Overhead includes RM 650 depreciation per month and paid one month in arrears. All purchases payment to suppliers will be paid in two equal instalments. The first instalment will be paid in the month of purchase and the remaining in the month after. • Three workers will be employed with a fixed salary of RM 2,000 per person. All of their salaries will be paid in the first day of the following month. • Interest on fixed deposit is expected to be received in December amounting RM 3,000. • A machinery costing RM 90,000 will be bought in October 2021, where RM 30,000 will be paid in the month of purchase. The balance will be paid in three months equal instalment. The machine will be depreciated 10% per annum using straight line method. Required: a) Prepare a cash budget for the company for the month of October, November and December 2021.
Transcribed Image Text:QUESTION JTET Sdn Bhd is an automotive manufacturing company located at Hicom Industrial Park. Currently, the owner, Mr Arifin is considering to open a new branch that is located at Pontian, Johor. He has asked you to help him to prepare cash budget over the first three months of operation, starting October 2021. The following information is available: Octobe Novembe Decembe Sales Purchase Overhead 60,000 66,000 22,000 24,100 69,000 32,200 2,650 2,500 3,600 Additional Information: • Mr Arifin is expected to contribute RM 100,000 cash as capital in order to set up the new branch. • In October, Mr Airifin will need to pay a rental deposit of RM10,000 and monthly rental of RM5,000 for the factory building. • 1/3 of the sales are cash sales. Total credit sales are expected to be paid: • 40% in the month of sales • 60% one month after sales Overhead includes RM 650 depreciation per month and paid one month in arrears. All purchases payment to suppliers will be paid in two equal instalments. The first instalment will be paid in the month of purchase and the remaining in the month after. • Three workers will be employed with a fixed salary of RM 2,000 per person. All of their salaries will be paid in the first day of the following month. • Interest on fixed deposit is expected to be received in December amounting RM 3,000. • A machinery costing RM 90,000 will be bought in October 2021, where RM 30,000 will be paid in the month of purchase. The balance will be paid in three months equal instalment. The machine will be depreciated 10% per annum using straight line method. Required: a) Prepare a cash budget for the company for the month of October, November and December 2021.
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