Question 4 Razali intends to run a laundry shop on 1 January 2020 with an...
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Question 4 Razali intends to run a laundry shop on 1 January 2020 with an initial capital of RM32,480 consisting of: RM Cash in bank 1 980 Cash in hand 500 Machine 30,000 Razali plans to apply for a loan of RM12,000 in February 2020 at an interest rate of 8% per annum. The loan will be repaid monthly for 4 years, starting the following month. The estimated receipts and payments for his business are as follows: i) Revenue from laundry services for January 2020nwas RM8,900. This revenue is expected to increase 10% each month from the following month. ii) The total purchase of detergents by month is as follows: RM January 1,500 February 1,800 March 2,160 60% of the purchase of detergent will be paid in cash and the balance will be paid in the following month. iii) The monthly rent is RM1,200. iv) Utility budget: RM January 860 February 970 March 1,120 v) The business plans to buy five units of dryers and two units of washing machines at a total cost of RM40,000 in March. An advance payment of 60% will be made and the balance paid in full in the following month. Required: On behalf of Razali, prepare a cash budget for the three months ending 31 March 2020. (Total: 20 Marks)
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