Question

Raysun Inc, Sells micro solar panels for $1.99 each. The marketing department prepared the following semiannual forecast:

January 30,000 panels

February . 38,000 panels

March 39,000 panels

April . 41,000 panels

May 43,000 panels

June 49,000 panels

Over the past few years Raysun Inc. has collected 25% of sales in the month of sale. 60 % in the month following the month of sale 14% in the second month following month of sale.

Required:

A. Prepare a monthly sale budgets for January through June. Includes a total column.

B. Prepare a monthly cash receipts budget for the second quarter (April, May and June). Include a total column.

Answer 1

Answer 1 Monthly sales budget

Raysun Inc
Sales Budget
For the first Half from January through June
Sales Budget	January	February	March	April	May	June	Total
Sales In Units	30000	38000	39000	41000	43000	49000	240000
Sale on Account @ 1.99	$        59,700	$        75,620	$        77,610	$          81,590	$        85,570	$        97,510	$        477,600

Answer 2 Cash Receipts budget for April, May and June

Raysun Inc
Monthly Cash Receipts Budget
	April	May	June	Total
From February Sale	$ 10,586.80	0	0	$    10,586.80
From March Sale	$    46,566.0	$ 10,865.40	0	$    57,431.40
From April Sale	$ 20,397.50	$    48,954.0	$ 11,422.60	$    80,774.10
From May Sale	0	$ 21,392.50	$    51,342.0	$    72,734.50
From June Sale	0	0	$ 24,377.50	$    24,377.50
Total Collections from Customers	$ 77,550.30	81211.9	87142.1	$ 245,904.30

All above Calculations are based on followings

Collections in April
From February Sale	=75620*14%	$ 10,586.80
From March Sale	=77610*60%	$ 46,566.00
From April Sale	=81590*25%	$ 20,397.50
Collection in May
From March Sale	=77610*14%	$ 10,865.40
From April Sale	=81590*60%	$ 48,954.00
From May Sale	=85570*25%	$ 21,392.50
Collection in June
From April Sale	=81590*14%	$ 11,422.60
From May Sale	=85570*60%	$ 51,342.00
From June Sale	=97510*25%	$ 24,377.50

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