To create a cash receipts budget based on the provided information, we'll need to follow these steps:
- Determine the sales for each quarter for the year.
- Calculate the cash receipts for each quarter based on the collection pattern.
Given:
- Collection Pattern:
- 70% of sales collected in the quarter of sale.
- 30% of sales collected in the following quarter.
- Accounts Receivable on January 1, 2014: Br. 90,000 (to be collected in Q1 2014).
Assumptions:
Let's assume the sales for each quarter in 2014 are as follows:
- Q1 Sales: Br. 200,000
- Q2 Sales: Br. 300,000
- Q3 Sales: Br. 250,000
- Q4 Sales: Br. 400,000
Cash Receipts Calculation:
Q1:
- Collections from Accounts Receivable (Jan 1): Br. 90,000
- Collections from Q1 Sales:
- 70% of Q1 Sales = 70% of Br. 200,000 = Br. 140,000
- Total Cash Receipts in Q1:
- Br. 90,000 + Br. 140,000 = Br. 230,000
Q2:
- Collections from Q1 Sales:
- 30% of Q1 Sales = 30% of Br. 200,000 = Br. 60,000
- Collections from Q2 Sales:
- 70% of Q2 Sales = 70% of Br. 300,000 = Br. 210,000
- Total Cash Receipts in Q2:
- Br. 60,000 + Br. 210,000 = Br. 270,000
Q3:
- Collections from Q2 Sales:
- 30% of Q2 Sales = 30% of Br. 300,000 = Br. 90,000
- Collections from Q3 Sales:
- 70% of Q3 Sales = 70% of Br. 250,000 = Br. 175,000
- Total Cash Receipts in Q3:
- Br. 90,000 + Br. 175,000 = Br. 265,000
Q4:
- Collections from Q3 Sales:
- 30% of Q3 Sales = 30% of Br. 250,000 = Br. 75,000
- Collections from Q4 Sales:
- 70% of Q4 Sales = 70% of Br. 400,000 = Br. 280,000
- Total Cash Receipts in Q4:
- Br. 75,000 + Br. 280,000 = Br. 355,000
Summary of Cash Receipts Budget:
| Quarter | Cash Receipts | |-------------|-----------------------| | Q1 2014 | Br. 230,000 | | Q2 2014 | Br. 270,000 | | Q3 2014 | Br. 265,000 | | Q4 2014 | Br. 355,000 |
Let me know if you need more information or if you have the sales figures for each quarter, and I can adjust the calculations accordingly!
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