The manager of Ingrid Ltd is preparing their budget for the upcoming fiscal quarter, commencing 1 January. The following information is available:

• The following balances are expected for the end of this month (31 December): cash $20,000; accounts receivable $140,000, accounts payable $50,000 and unpaid expenses $16,000. The manager expects 95% of the amount outstanding from customers at the end of this month to be collected in January and the remainder uncollectable.
• Projected balances for the next quarter are as follows:

	January	February	March
Sales revenue	152,000	154,000	160,000
Purchases	80,000	82,000	84,000
Salaries	20,000	20,000	20,000
Depreciation	5,000	5,000	5,000
Other expenses	32,000	33,000	34,000

• 80% of monthly sales are on credit. Receipts from credit customers are normally 70% in the month of sale, 26% in the month following the sale, and the remainder is considered uncollectable.
• 40% of goods purchased are paid for in the month of purchase and the remaining is paid in the following month.
• Salaries are paid before the end of each month. 50% of other monthly expenses are paid for in the month incurred and the remainder paid in the following month.
• Ingrid Ltd has placed an order for new furniture that will cost $20,000. The scheduled payment date is in April.

Required:

Prepare the schedule of cash receipts for January to March.

Section 6: Product Mix

Freyr has 120,000 square meters of land, on which he grows sugarcane, maize and rice. The following information relates to the anticipated demand and production capacity for the next season:

	Sugarcane	Maize	Rice
Selling price per tonne ($)	30	80	52
Variable cost per tonne ($)	8	15	12
Allocated fixed cost per tonne ($)	6	8	4
Square metres required per tonne of output	12	40	16
Estimated sales demand (tonnes)	3,000	3,000	3,000
Square meters required to meet sales demand	36,000	120,000	48,000

Required:

Determine how many units of each product Freyr should produce to maximise profitability.