Rainbo Enterprises has presented the following estimates relating to 2018 activities. Quarter endinq 31 March 30 June Cash sales Credit sales Purchases Cost of Sales Marketing and $79,000 $711,000 504,000 395,000 $178,000 $712,000 429,000 445,000 30 September $198,000 $792,000 409,000 495,000 31 December $208,000 $832,000 439,000 520,000 administration expense 188,000 87,000 20,500 188,000 87,000 20,500 188,000 87,000 20,500 188,000 87,000 20,500 Occupancy Expenses Depreciation expense Credit sales in the December quarter of 2017 were $621,000. 55 percent of the credit sales are collected in the quarter of sale and the remaining are collected in the following quarter. All purchases are paid for in the same quarter. The marketing and administration expenses are paid for in the quarter they are incurred. Occupancy expenses including electricity expense are paid for in the quarter they are incurred except that the electricity expense (estimated to be $700) for December 2018 will not be paid until January 2019. A major IThrdware acquisition of $65,500, to be paid for in cash, is expected in the December quarter. The bank balance at 31 December 2017 was $18,450 Required i. Prepare a schedule of budgeted cash receipts for each quarter of 2018. (3 marks) Prepare a cash budget (on a quarterly basis) for the 12 months ending 31 December ii. 2018. (5 marks) ii. Discuss the cash position of the entity for 2018 and also discuss the positive and the negative implications of this position. (3 marks) iv. Prepare a budgeted income statement for the 12 months ending 31 December 2018 (4 marks) (b)At the recent finance committee meeting, the Chief Operating Officer advised the marketing department that a 10 per cent increase in sales is expected for the coming year. The increase is to apply to all product lines. What are the potential behavioural effects on employees from this directive? (Ignore information from above.)