Quality Crafts is planning for the 1" quarter ending September 2023, and has supplied the following Information:

Purchases

The forecast sales for the next three months are:

Month Sales ($)

July 80 000

August 65 000

September 50 000

30% of its sales are in cash, and the remainder is on credit. Of the credit sales, 40% is paid in the month of sale, and 55% is paid in the month after the sale. The remaining 5% is deemed uncollectable. The 30 June accounts receivable balance is $25 000. The company plans to sell some of its office furniture in October for $20 000.

Required:

a) a schedule of expected cash receipts for each of the three months (July- September), including the total cash receipts for the quarter.

b) Comment on Quality Crafts expected cash position in the upcoming 1" quarter of 2023. (Word limit: 150 words)