a) Ruby Berhad is planning to request a line of credit from its bank and wants to estimate its cash needs for the month of March. The following sales forecasts have been made for 2019: January February RM500,000 400,000 March 300,000 200,000 100,000 April May Collection estimates were obtained from the credit collection department as follows: 20% collected within the month of sale; 70% collected the first month following this sale; and 10% collected the second month following the sale. Payments for labor and raw materials are typically made in the month in which these costs are incurred. Total labor and raw material costs each month are 50% of sales. General administrative expenses are RM30,000 per month, and lease payments are RM10,000 per month. The corporation tax rate is 40%; however, no corporate taxes are paid in March. Required: Prepare the cash budget for Ruby Berhad for March 2019. (6 Marks) b) Scarlet Berhad operates a successful business. The firm has an inventory conversion period of 45 days, a receivables conversion period of 25 days and a payable deferral period of 30 days. The firm has a current annual outlay of RM1,000,000 in one-cycle investments and pays 10% for the negotiated financing. Required: i. Calculate the firm's cash conversion cycle. (2 Marks) ii. Calculate the firm's annual savings if the operating cycle is reduced by 5 days. (4 Marks) c) Barn Red Berhad has factored RM100,000 of its accounts receivable with a 60-day credit term. The factor charges 2% fee, a 9% reserve and interest at 1.5% per month on advances. What is the maximum loan or advance that the firm can receive from the factor? (4 Marks)