9.50 Preparation of receipts from accounts receivable schedule and cash budget Rainbow Enterprises has presented the following estimates relating to 2018 activities. Sales revenue Purchases Cost of sales Marketing and administration expenses Occupancy expenses Depreciation expense 31 March $ 790 000 504 000 395 000 188 000 87 000 14400 Quarter ending 30 June 30 September $890 000 $990 000 429 000 409 000 445 000 495 000 188 000 188 000 87 000 87 000 14400 14400 31 December $1 040 000 439 000 520000 188 000 87 000 14400 Sales in the December quarter of 2017 were $690 000. All sales are on credit, of which 55 per cent are collected in the quarter of sale and 45 per cent in the following quarter. Purchases are on credit, and entity policy is such that all purchases are paid for in the same quarter. The marketing and administration expenses incurred and paid are the same. Occupancy expenses incurred and paid are usually the same, except that the electricity bill (estimated to be $700) for December 2018 will not be paid until January 2019. A major IT hardware acquisition of $27 300, to be paid for in cash, is expected in the December quarter. The bank balance at 31 December 2017 was $18 450. Required a. Prepare a schedule of receipts from accounts receivable showing cash collections for each quarter of 2018. b. Prepare a cash budget (on a quarterly basis) for the 12 months ending 31 December 2018. a. Receipts from Debtors Schedule for 12 months ending 31 December 2018 March June September December Credit Sales December $690,000 March $790,000 June $890,000 September $990,000 December $104,0000 Total Cash Receipts Notes: Rainbow Enterprises Cash budget (insert Date line) March June September Dec Total List as many non-cash items that you can think of