(3) Extended exercise: Deana's Dressmakers design and make wedding dresses for brides across Australia. Each dress is handmade in her studio based in Sydney, and in recent years her reputation and customer base has expanded across the country. Deana seeks your help preparing cash budgets for her business, as she feels her recent expansion means she needs to manage her business cash flow more carefully. Like most bridal dress businesses, Deana requires a 50% cash deposit at the time of ordering a wedding dress (payment 1), and payment of the remainder on completion of the dress (payment 2). Payment 2 is always processed as a credit sale, with 10% being collected in the same month, and 90% being collected the following month. Deana's bank statement shows a balance of $190,000 at the beginning of the year. Deana's sales forecast for December to March is as follows: December January February March Cash sales 45 000 55 000 95 000 80 000 Credit sales 60 000 80 000 87 000 112 000 Total sales 105 000 135 000 182 000 192 000 Deana's most significant expenses relate to materials and labour designing and handmaking the wedding dresses. She purchases fabrics and sewing supplies each month equivalent to 20% of that month's budgeted sales, and has negotiated with her suppliers that her invoices will be due in the month following purchase. Deana pays her staff fortnightly, so 50% is paid in the month employees worked, and 50% is paid in the month following. She rosters her staff on the basis their salary cost will be equivalent to 30% of that month's budgeted sales. Another expense Deana incurs relates to selling and admin costs. They are budgeted at 20% of the month's estimated sales, and 25% of those costs is attributed to depreciation of Deana's sewing equipment. They are paid in the month of purchase. Other transactions include: the business sold its former storage facility for $47,000 in March; the business purchased new equipment for $71,550 in February; and the business paid a dividend of $50,000 in January. Deana's Dressmakers prefers to have a minimum of $185,000 in the business bank account at the end of each month, to ensure adequate funds are available for the coming month. The business has established an interest-free line of credit with their bank to cover any shortfall which may arise. The line of credit is repaid where the business has funds available to do so. Required A. Create a cash receipts budget for January, February and March. B. Create a cash disbursements budget for January, February and March. C. Create a summary cash budget for January, February and March.