$ BUDGETS (8 marks) Rainbow Ltd has presented the following estimates relating to activities for the quarter ended 31 March 2019: Month January 2019 February 2019 March 2019 $ $ Credit sales 97,000 114,000 102,000 Credit purchases 50,400 68,400 55,100 Cost of goods sold 63,100 73,000 60,200 Operating expenses 11,000 11,000 10,000 Depreciation 7,500 7,200 6,600 expenses Additional information: Credit sales for November 2018 and December 2018 are $109,000 and $91,000 respectively. Credit purchases for November 2018 and December 2018 are $67,600 and $46,400 respectively. Credit sales are normally settled according to the following pattern: 20% in the month of the sale 40% in the month following the sale The remainder in the second month following the sale The company policy is such that purchases for the current month is paid in the following month. The company policy is such that purchases for the current month is paid in the following month. Operating expenses are usually incurred and paid for in the same month, except that the utility bill (estimated to be $1,200) for January 2019 will not be paid until February 2019. The company is planning to acquire furniture amounting to $40,000 in January. Half of the amount is to be paid immediately, and the remaining amount to be paid in the following month. The company plans to declare dividends amounting to $15,000 in January, to be paid in the following month. Bank balance at December 2018 was $20,000. REQUIRED: Complete the schedule of receipts from accounts receivable and cash budget for the 3 months ending 31 March 2019. (8 marks) IMPORTANT: For payments, please don't include the - (minus) sign in front of the amounts and also don't put the amounts in parentheses. The - (minus) sign should only be used in front of any amounts that are negative in the last three rows of the cash budget (i.e., Excess (deficit) receipts over payments, Bank balance at beginning of month, Bank balance at end of month - don't put the negative amounts in parentheses). f you think the amount in a cell should be 0, type 0 - don't leave that cell empty. For any amounts, please don't include the dollar sign ($) or any thousands separator - i.e., $12,000 should be written as 12000. If Rainbow Ltd Receipt from Accounts Receivable in Month Credit Sales January 2019 February 2019 March 2019 Month November 2018 109,000 December 2018 91,000 January 2019 97,000 February 2019 114,000 March 2019 102,000 Rainbow Ltd Cash Budget for 3 Months Ended 31 March 2019 February January 2019 2019 March 2019 $ $ ANTICIPATED RECEIPTS Total $ Receipts from debtors Total receipts Cash Budget for 3 Months Ended 31 March 2019 February January 2019 2019 March 2019 $ $ $ ANTICIPATED RECEIPTS Total $ Receipts from debtors Total receipts ANTICIPATED PAYMENTS Payments to creditors Operating expenses Purchase of furniture Payments of dividends Total payments Excess/deficit Bank balance beginning Bank balance ending