Question

Thirst Quencher sells plastic water bottles to outdoor enthusiasts for $1.25 each. The company’s marketing manager prepared the following sales forecast (in units) for the first half of 2009:
January ..... 150,000
February ..... 125,000
March ...... 180,000
April ....... 165,000
May ....... 165,000
June ....... 155,000
Total....... 940,000
Historically, the cash collection of sales has been as follows: 55 percent of sales collected in month of sale, 35 percent of sales collected in month following sale, and 9 percent of sales collected in second month following sale. The remaining 1 percent is never collected because customers do not pay.

Required
Prepare a cash receipts budget for each month of the second quarter (April, May, and June).



$1.99
Sales3
Views252
Comments0
  • CreatedMarch 11, 2015
  • Files Included
Post your question
5000