Sawera Coporation reported sales of RM350,000 in June, RM380,000 in July, and RM390,000 in August. The forecasts for September, October and November are RM385,000, RM418,000 and RM429,000, respectively. The initial cash balance on September 1 is RM150,000, and a minimum of RM8,000 should be kept. Use the given information to compile a cash budget for the months of September, October and November. a) Sawera predicts that 5% of its sales will never be collected, 30% of its sales will be cash sales, and the remaining 65% will be collected in the following acc receiveble month. b) c) d) e) f) h) i) cash dis Sawera receives other monthly income of RM3,000. other cash receipt The actual or expected purchases are RM150,000, RM120,000 and RM115,000 for the months of September to November, respectively, and [50%] are paid in cash while the remainder is paid in the following month. The purchases for August were RM120,000.- Nov Monthly rent is RM3,500 chargeable only in October and November. Wages and salaries are 12% of the previous month's sales.darah dgn sale Cash dividends of RM4,600 are declared and will be paid in September. Long term loan repayment of principal of RM4,700 is due in October. Additional equipment costing RM8,500 is ordered and scheduled to be paid for in cash in November. Taxes of RM8,250 are due in November.
Sawera Coporation reported sales of RM350,000 in June, RM380,000 in July, and RM390,000 in August. The forecasts for September, October and November are RM385,000, RM418,000 and RM429,000, respectively. The initial cash balance on September 1 is RM150,000, and a minimum of RM8,000 should be kept. Use the given information to compile a cash budget for the months of September, October and November. a) Sawera predicts that 5% of its sales will never be collected, 30% of its sales will be cash sales, and the remaining 65% will be collected in the following acc receiveble month. b) c) d) e) f) h) i) cash dis Sawera receives other monthly income of RM3,000. other cash receipt The actual or expected purchases are RM150,000, RM120,000 and RM115,000 for the months of September to November, respectively, and [50%] are paid in cash while the remainder is paid in the following month. The purchases for August were RM120,000.- Nov Monthly rent is RM3,500 chargeable only in October and November. Wages and salaries are 12% of the previous month's sales.darah dgn sale Cash dividends of RM4,600 are declared and will be paid in September. Long term loan repayment of principal of RM4,700 is due in October. Additional equipment costing RM8,500 is ordered and scheduled to be paid for in cash in November. Taxes of RM8,250 are due in November.
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
Related questions
Question
![Sawera Coporation reported sales of RM350,000 in June, RM380,000 in July, and
RM390,000 in August. The forecasts for September, October and November are
RM385,000, RM418,000 and RM429,000, respectively. The initial cash balance on
September 1 is RM150,000, and a minimum of RM8,000 should be kept. Use the
given information to compile a cash budget for the months of September, October
and November.
a) Sawera predicts that 5% of its sales will never be collected, 30% of its sales
will be cash sales, and the remaining 65% will be collected in the following
month.
are receiveble
b)
c)
d)
e)
f)
g)
h)
i)
cash dis
Sawera receives other monthly income of RM3,000. other cash receipt
The actual or expected purchases are RM150,000, RM120,000 and
RM115,000 for the months of September to November, respectively, and 50%]
are paid in cash while the remainder is paid in the following month. The
purchases for August were RM120,000.- Nov
Monthly rent is RM3,500 chargeable only in October and November.
Wages and salaries are 12% of the previous month's sales. darah dgn sale
Cash dividends of RM4,600 are declared and will be paid in September.
Long term loan repayment of principal of RM4,700 is due in October.
Additional equipment costing RM8,500 is ordered and scheduled to be paid
for in cash in November.
Taxes of RM8,250 are due in November.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bc42478-e2da-426d-8b42-d6e3ed0ac1ab%2Feb474c9e-29b5-4153-a766-60add005d743%2F751uvb_processed.png&w=3840&q=75)
Transcribed Image Text:Sawera Coporation reported sales of RM350,000 in June, RM380,000 in July, and
RM390,000 in August. The forecasts for September, October and November are
RM385,000, RM418,000 and RM429,000, respectively. The initial cash balance on
September 1 is RM150,000, and a minimum of RM8,000 should be kept. Use the
given information to compile a cash budget for the months of September, October
and November.
a) Sawera predicts that 5% of its sales will never be collected, 30% of its sales
will be cash sales, and the remaining 65% will be collected in the following
month.
are receiveble
b)
c)
d)
e)
f)
g)
h)
i)
cash dis
Sawera receives other monthly income of RM3,000. other cash receipt
The actual or expected purchases are RM150,000, RM120,000 and
RM115,000 for the months of September to November, respectively, and 50%]
are paid in cash while the remainder is paid in the following month. The
purchases for August were RM120,000.- Nov
Monthly rent is RM3,500 chargeable only in October and November.
Wages and salaries are 12% of the previous month's sales. darah dgn sale
Cash dividends of RM4,600 are declared and will be paid in September.
Long term loan repayment of principal of RM4,700 is due in October.
Additional equipment costing RM8,500 is ordered and scheduled to be paid
for in cash in November.
Taxes of RM8,250 are due in November.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT