Dear all, Please answer this question with a clear and big size explanation. Thank you!

Subject Finance management

Saujana Putra Corporation reported sales of RM50,000 in June and RM60,000 in July. The forecasts for August, September, October, November, and December sales are RM65,000, RM72,000, RM63,000, RM59,000, and RM56,000 respectively. The initial cash balance on September 1 is RM3,000, and a minimum of RM10,000 should be kept. Use the given information to compile a cash budget for the months of September, October, November and December and interpret the results.

a) Saujana Putra predicts that 10% of its sales will be cash sales, and the collection was 50% in the first month, 30% in the second month and the remaining 10% will be collected in the third month following the sales.

ii. Saujana Putra is expected to receive RM500 of dividends from investments in October.

iii. The actual or expected purchases are 60% of sales, where 15% are paid in cash, 65% are paid one month later, and the rest is paid two months after purchase.

iv. Cash dividends of RM8,000 are declared and will be paid by the company to its shareholders twice a year (in March and September).

v. The monthly rent is RM2,000.

vi. Taxes of RM6,500 are due in December.

vii. Additional equipment costing of RM2,300 is ordered and scheduled to be paid for in cash in October.

viii. Long-term loan repayment of principal of RM1,000 is paid every month.

ix. Interest payment of RM1,500 is due in November.

x. Wages and salaries are 5% of sales in each month (current month) plus RM1000.

b ) Please explain how a percent-of-sales method can be used to prepare a pro forma income statement. Discuss the major weaknesses of the approach and how to overcome it.

c) Please explain how a financial manager can cope with uncertainty in preparing his firms cash budget?

d) DuPont analysis is an expression which breaks Return on Equity (ROE) into three parts namely profitability, asset efficiency, and financial leverage. As a financial manager, how are you going to explain an increase in a firms ROE from a DuPont analysis perspective?