Quality Crafts is planning for the 1st 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) Prepare a schedule of expected cash receipts for each of the three months (July September), including the total cash receipts for the quarter. (5 marks)

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