Rona Sdn Bhd is a retail company. For the purpose of company planning and control, the company intends to prepare a budget for the first half of 2024, from January to June 2024. The following information is provided:
(i) Sales
For your information, 30% of the sales amount is collected in the selling month, and the remainder is collected in the following month.
The company's policy stipulates that the value of ending inventory must be 20% of the sales for the following month. 60% of purchases are paid in the month of acquisition, and the remaining 40% is paid in the following month. In March 2024, the company plans to purchase a machine worth RM35,000 in cash. The company sets a minimum cash account balance of RM20,000. Loans can be obtained at an annual interest rate of 8%.
The account balance on December 31, 2022, is as follows:
Rona Sdn Bhd is a retail company. For the purpose of company planning and control, the company intends to prepare a budget for the first half of 2024, from January to June 2024. The following information is provided:
(i)
Sales Month
Sales (RM) 30,000
December 2023 (Actual sales January 2024 February 2024 March 2024 April 2024 May 2024 June 2024
35,000
42,000
25,000
25,000
40,000
45,000
For your information, 30% of the sales amount is collected in the selling month, and the remainder is collected in the following month.
Expenses Salary Transportation
3,750 10% of sales
Advertising
RM3,000
Depreciation
RM1,000
Other expenses
5% of sales
The company's policy stipulates that the value of ending inventory must be 20% of the sales for the following month. 60% of purchases are paid in the month of acquisition, and the remaining 40% is paid in the following month. In March 2024, the company plans to purchase a machine worth RM35,000 in cash. The company sets a minimum cash account balance of RM20,000. Loans can be obtained at an annual interest rate of 8%
The account balance on December 31, 2022, is as follows:
Credit
Cash Account receivable Beginning inventory
34,500
21,000
4,900
Plant and Machinery
107,050
Account payable
8,680 95,000
Capital Net profit/loss
63,770
Based on the above information, you are required to prepare a budget for Rona Sdn Bhd
Sales budget I. Purchase budget
II. Expenses budget IV. Cash budget V. Income statement