Prepare cash receipt budget for each month of second quarter

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Reference no: EM131211098

Budget 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 the year:

Jan 150000

Feb 125000

March 180000

April 165000

May 165000

June 155000

Total 940000

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: For the following task, round the per unit answers to the nearest cent, if required. Prepare a cash receipts budget for each month of the second quarter (April, May, and June).

Reference no: EM131211098

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