(Question 1) (a) RedTech Berhad needs cash budget for first quarter of 2022. All information needed are given below. The estimated future sales: December 2021 RM90,000 January 2022 RM105,000 February 2022 RM120,000 March 2022 RM125,000 April 2022 RM150,000 Additional information: 70 percent of sales are for cash, with remaining 30 percent collected in the one month after the sale. Purchase of material is predicted at 60 percent of sales and the payment will be made a month later. Rent expenses is RM5,000 per month. Wages and salaries are RM15,000 per month. . The firm plans to buy a new equipment in February for RM7,500 in cash. Interest payment for long term debt will be paid in January. The interest amount is 4 percent of RM 100,000 debt. . A quarterly dividend of RM10,000 need to be paid by RedTech Berhad at the end of each quarter (March, June, September, and December). The firm ending cash balance for December 2021 is RM40,000 and the minimum balance the wishes to have in any month is RM20,000. As a financial manager of the firm, you are required to a set up a cash budget for the first quarter of 2022. (15 marks) (b) "Dividends are payments made to stockholders from a firm's earnings, whether those earnings were generated in the current period or in previous periods. Usually, dividend refers to cash distributions of earnings. Paying cash dividends reduces the corporate cash and retained earnings." Explain FOUR (4) types of policy as per discussed in the above statement. (10 marks) (Question 1) (a) RedTech Berhad needs cash budget for first quarter of 2022. All information needed are given below. The estimated future sales: December 2021 RM90,000 January 2022 RM105,000 February 2022 RM120,000 March 2022 RM125,000 April 2022 RM150,000 Additional information: 70 percent of sales are for cash, with remaining 30 percent collected in the one month after the sale. Purchase of material is predicted at 60 percent of sales and the payment will be made a month later. Rent expenses is RM5,000 per month. Wages and salaries are RM15,000 per month. . The firm plans to buy a new equipment in February for RM7,500 in cash. Interest payment for long term debt will be paid in January. The interest amount is 4 percent of RM 100,000 debt. . A quarterly dividend of RM10,000 need to be paid by RedTech Berhad at the end of each quarter (March, June, September, and December). The firm ending cash balance for December 2021 is RM40,000 and the minimum balance the wishes to have in any month is RM20,000. As a financial manager of the firm, you are required to a set up a cash budget for the first quarter of 2022. (15 marks) (b) "Dividends are payments made to stockholders from a firm's earnings, whether those earnings were generated in the current period or in previous periods. Usually, dividend refers to cash distributions of earnings. Paying cash dividends reduces the corporate cash and retained earnings." Explain FOUR (4) types of policy as per discussed in the above statement. (10 marks)