M20 Company has presented the following estimates relating to 2021 activities.

Sales in the December quarter of 2020 are $345000. All sales are on credit, of which 55 per cent are collected in the quarter of sale and 45 per cent in the following quarter. Purchases are on credit and entity policy is that all purchases are paid for in the same quarter. The marketing and administration expenses incurred and paid are the same. Occupancy expenses incurred and paid are usually the same, except that the electricity bill (estimated to be $700) for December 2021 will not be paid until January 2022. A major IT hardware acquisition of $13650, to be paid for in cash, is expected in the December quarter. The bank balance at 31 December 2020 is $9225.

Required
(a) Prepare a schedule of receipts from the accounts receivable showing cash collections for each quarter of 2021.
(b) Prepare a cash budget (on a quarterly basis) for the 12 months ending 31 December 2021.
(c) Assess the cash position of the entity for 2021.

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Sales revenue Purchases Cost of sales Marketing and administration expenses Occupancy expenses Depreciation expense 31 March $395 000 252 000 197 500 94 000 43 500 12200 Quarter ending 30 June $445 000 214500 222 500 94 000 43500 12200 30 September $495 000 204 500 247500 94000 43 500 12200 31 December $520 000 219500 260 000 94 000 43 500 12200