ByteWave Ltd has the following budget information for the third quarter of the year:

• Sales: £300,000
• Cash Sales: 50% of total sales
• Collections on Credit Sales: 70% in the month of sale, 25% in the following month
• Purchases: £200,000 (75% paid in the month of purchase, 25% in the following month)
• Operating Expenses: £70,000 (paid in the month incurred)
• Beginning Cash Balance: £30,000

Requirements:

1. Prepare a cash receipts schedule for the third quarter.
2. Prepare a cash payments schedule for the third quarter.
3. Prepare a cash budget for the third quarter, including the ending cash balance.