IKA Electricals Ltd is a major distributor of electrical appliances for households, with seven distribution outlets in the country. Rapid expansion has created the need for careful planning of cash requirements to ensure that the company is able to replenish stock adequately and meet payment schedules to creditors. The banker of the company, CBG Bank, has agreed to provide credit towards the growth of IKA Electricals, on account that a minimum balance of GHS8,200 is kept in the companys current account at the end of each month. When the balance goes below GHS8,200 the bank automatically extends the line of credit in multiples of GHS1,000 so that the current account balance is at least GHS8,200 at month-end. The following cash receipts and disbursements data relate to the fourth quarter of the current calendar year. GH Estimated beginning cash balance 8,800 Estimated cash sales: October 14,000 November 29,000 December 44,000 Sales on account: July (Actual) 130,000 August (Actual) 104,000 September (Actual) 128,000 October (estimated) 135,000 November (estimated) 142,000 December (estimated) 188,000 Projected cash collection of sales on account is estimate to be 70% in the month following the sale, 20% in the second month following the sale, and 6% in the third month following the sale. The 4% beyond the third month following the sale is determined to be uncollectible. In addition, IKA Electricals is scheduled to receive GHS13,000 cash in October. All inventory purchases are made on account as IKA Electricals has excellent credit record with all vendors, because of a strong payment history. The following information regarding inventory purchases is available: GHS September (actual) 120,000 October (estimated) 112,000 November (estimated) 128,000 December (estimated) 95,000

Cash disbursement for inventory are made in the month following purchase receiving an average cash discount of 3% for timely payment. Monthly cash disbursements for operating expenses during October, November and December are estimated to be GHS38,000, GHS41,000 and GHS46,000 respectively. Required: Prepare IKA Electricals company the i. Receivables collection schedule ii. Payables payment schedule iii. cash budget for the month of October, November and December