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Khabib is also planning to do a cash budget. He plans to do cash budget only for three months: August, September and October. Sales forecasted for those months are RM300,000, RM400,000 and RM500,000. The previous months' sales figures are RM100,000 and RM200,000 in June and July. Based on historical transaction, 30 percent is collected from current month, while 20 percent is collected a month later and 50 percent is collected 2 months later. In addition, he expects to earn rental income of RM20,000 in the month of August and September.

(i) Calculate the cash receipt for the month of August, September and October. (3 marks)

Purchases for the month of June and July is RM60,000 and RM140,000 respectively. For the following month, August, September and October, the purchases are projected 75 percent of the current month's sales. Khabib company pays 50 percent in cash for the current month, 30 percent the following month and 20 percent 2 months later from the current purchase. He expects to incur interest payment of RM2,000 every month and salaries is projected 5 percent of the previous sales figure.

(ii) Calculate cash disbursement for the month of August, September and October. (3 marks)

Khabib expects to have RM50,000 cash beginning of August and to have minimum amount of RM30,000 every month.

(iii) Determine the cash amount Khabib will have by the end of August, September and October based on the above assumptions. (5 marks)

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