Question

Please help answer below questions:

Akers Transport is a small transport and courier entity that provides logistic services for online traders. All work is provided on 30-day credit terms. The cash balance at 1 January 2016 was $31,?600. The following estimates have been made with respect to the first three months of operation in 2016.

	January	February	March
Credit Sales/Fees	$164 000	$270 000	$310 000
General admin expenses	26 000	32 000	41 250
Utilities	4 250	5 100	6 170
Wages	89 200	86 500	82 300
Loan - principal			15 000
Loan interest expense			3 500
Marketing expenses	13 680	13 680	13 680
Vehicle related expenses	34 200	35 600	36 900
Depreciation on vehicle fleet	3 200	3 200	3 200
Dividend paid			15 000

Additional information

Past experience suggests that accounts receivable usually settle accounts according to the following pattern:

50 per cent in the month following the sale

40 per cent in the second month following the sale

10 per cent in the third month following the sale.

Sales for the last three months of 2015 were as follows:

$210,?000 in October

$282,000 in November

$303,000 in December.

As bad debts have not been an issue for Akers Transport, it is expected that all customers will pay their monies owing.

The vehicle-related expenses for March include an amount of $2,300 that will not be paid until April.

The marketing expenses for March include an amount of $4,200 paid for advertising to be conducted in April.

The loan interest expense will not be paid until April 2016.

Required:

Prepare a schedule of receipts from accounts receivable.

Using the schedule of receipts calculated in part 1, prepare a cash budget for the 3 months ending 31 March 2016.