The cash budget is the primary tool used in short-term

The cash budget is the primary tool used in short-term financial planning. As with many calculations, the sales forecast is a primary input. As an example of the cash budgeting process, we will use the Fun Toys Corporation. The sales projections and other information provided are:
Q1Q2Q3Q4
Sales$    200,000,000$      300,000,000$    250,000,000$    400,000,000
Beginning receivables:$    120,000,000
Receivables period (days):                       45
With the receivables period shown, we can calculate the percentage of sales collected in the current quarter as:
Percentage of sales received:

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