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October November December Credit sales ...

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Question

Accounting

October

November

December

Credit sales

RM547,200

RM570,240

RM630,720

Credit purchases

211,680

252,720

288,710

Cash disbursement:

Expenses

57,240

69,420

72,430

Interest

16,410

16,410

16,410

Equipment purchases

119,520

131,040

0

In addition, Changloon Hardware has anticipated that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of sale, and the remaining 60 percent will be collected in the following month. Moreover, its credit purchases will be paid in the month following the purchase.

Meanwhile, in the month of September, both the credit sales and credit purchases were RM302,400 and RM224,640, respectively. As for August, the credit sales were RM206,100 whereas credit purchases were amounting to RM150,780.

It is noted that the beginning cash balance for October was RM403,200 and minimum cash balance that need to be maintain every month was RM25,000.

You are required to prepare the cash budget for Changloon Hardware for the month of October to November 2020.

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