AWCummins is one of Australia's largest retail outlets and has decided to prepare cash budget

for the quarter ended 31 March 2020.

As at 1 January 2020, the Cash at bank ledger account will have a debit balance of $50,000.

The following estimates have been made for the next three months:

January February March

Sales. $200,000 $300,000. $350,000

Cash purchases $150,000 $225,000 $250,000

Cash wages $40,000 $50,000. $52,500

Depreciation of plant $10,000 $10,000. $10,000

Rental expenses $25,000 $25,000 $25,000

Insurance expenses $750. $750 $750

Loan repayment $1,000. $1,000. $0

All sales are on credit. It is expected that debtors will pay their accounts as follows:

60 per cent in the month following the sale.

30 per cent in the second month following the sale.

10 per cent in the third month following the sale.

Actual sales for the previous three months were as follows:

$350,000 in December 2019

$275,000 in November 2019

$300,000 in October 2019

Rental expenses and insurance expenses are paid the following month after they are incurred.

December expenses were as follows: Rental expense: $9,000 and insurance expense $700.

REQUIRED:

Part A: Prepare a schedule of cash receipts from debtors for the Quarter ending 31 st March 2020.

(5.25 marks)

Part B: Prepare a cash budget for the Quarter ending 31 st March 2020. (6.75 marks)