GHI Ltd has the following budget information for the first quarter of the year:

• Sales: £120,000
• Cash Sales: 30% of total sales
• Collections on Credit Sales: 60% in the month of sale, 30% in the following month
• Purchases: £80,000 (50% paid in the month of purchase, 50% in the following month)
• Operating Expenses: £30,000 (paid in the month incurred)
• Beginning Cash Balance: £10,000

Requirements:

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