Parrots Ltd. has asked you, the new management accountant, to help with planning their cash needs for the months of January to March 2019. The following information was provided: Year Month Sales S 2018 October 250,000 November 240,000 December 260,000 2019 January 180,000 February 210,000 March 230,000 60% of sales are on credit, of all credit sales, 50% are collected in the month of sale, 30% collected in the month following sale and the remainder is collected during the second month following sale. Parrots Ltd. mainly buys stock from its suppliers. Purchases are 70% of sales each month and 35% are paid in the first month following purchase and the remainder in the second month following purchase. The following information applies to other cash expenses and receipts for the period: i. The company will have an opening cash balance of $70,000 on January ii. iv. V. 1,2019. Rent of $8,000 will be paid monthly. Salaries of $50,000 will be paid monthly Telephone costs per month $1,000 Receipts from selling advertising space on the delivery truck are $3,500 per vi. month. In January 2019 the company will pay $8,000 to service machinery vii. Delivery costs to be paid monthly will amount to 5% of monthly sales viii. In February 2019 the company will pay the final instalment on its delivery truck amounting to $15,000. Required: A. Prepare a monthly statement of expected receipts for the period January to March 2019 (6 marks) B. Prepare a monthly statement for the expected payments for purchases for the period January to March 2019. (4 marks) C. Prepare the Cash budget for the period January to March 2019. (20 marks)