1 Example 4: operating receipts and payments budget The following is expected data of Bahrain Co. for the next year 2015: 1. Expected sales are: Quarter Statement Year 23 4 Cash Sales 15,000 32,000 40,000 8,000 95,000 Credit Sales 35,000 18,000 10,000 2,000 65,000 Total Sales 50,000 50,000 50,000 10,000 160,000 2. The company receives 70% of credit sales in the same quarter, and 30% in the next quarter. 3. The credit sales of the fourth quarter of the year 2014 are $30,000 4. The expected purchases are: 1 Quarter Statement Year 23 4 Cash Purchases 10,000 12,000 35,000 20,000 77,000 Credit Purchases 20,000 12,000 15,000 10,000 57,000 Total Purchases 30,000 24,000 50,000 30,000 134,000 5. The company paid 90% of the credit Purchases in the same quarter of the year and 10% in the next quarter. 6. The credit purchases of the fourth quarter of the year 2014 are $50,000 Instruction: Prepare operating receipts and payments budget