Reference no: EM132999593

Question - Orange Juice Limited has presented the following estimates relating to 2019 activities:

Quarter ending	31 March	30 June	30 September	31 December
Sales revenue	600,000	750,000	820,000	870,000
Purchases	350,000	400,000	400,000	420,000
Cost of sales	300,000	375,000	410,000	435,000
Administrative expenses	125,000	125,000	125,000	125,000
Occupancy expenses	55,000	55,000	55,000	55,000
Depreciation expense	15,750	15,750	15,750	15,750

The following information was given:

a) Sales in the December quarter 2018 were R 500 000.

b) All sales are on credit, of which 60 per cent are collected in the quarter of sale and 40 per cent in the following quarter.

c) Purchases are on credit, and entity policy is such that all purchases are paid for in the same quarter.

The administration expenses incurred and paid are the same.

d) Occupancy expenses incurred and paid are the same, except that the December quarter does not include the last month's utility's R785.

e) IT hardware acquisition of R 27 420, to be paid for in cash, is expected in the December quarter.

f) The bank balance at 31 December 2018 was R25 400.

Required -

1. Prepare a schedule of receipts from debtors showing cash collections for each quarter of 2019?

2. Prepare the cash budget for each quarter?