BUDGETING A BUSINESS SCENARIO - STEP 7 CASH BUDGET - CASH RECEIPTS FROM SALES The budgeted income statement for the first three months of the year shows that Budg expects to make a healthy profit of $62,075. However, Profit does not equal Cash! The main concern of both entities and their banks will always be the cash flowing in and the cash flowing out. Budg understand the importance of preparing cash flow forecast alongside budgeted income statement. Sales will happen monthly but cash from sales is not necessarily received in the same months Where goods are purchased on credit, there is a time lag between the date of the sale and the day on which csh from that sale is received. Based on her past experience and knowledge, Budg expects 30% of her customers to pay in the month of sale and the remainin 70% in the following month. From the above information, can you produce the expected monthly cash receipts from sales? BUDGETING A BUSINESS SCENARIO - STEP 7 CASH BUDGET - CASH RECEIPTS FROM SALES The budgeted income statement for the first three months of the year shows that Budg expects to make a healthy profit of $62,075. However, Profit does not equal Cash! The main concern of both entities and their banks will always be the cash flowing in and the cash flowing out. Budg understand the importance of preparing cash flow forecast alongside budgeted income statement. Sales will happen monthly but cash from sales is not necessarily received in the same months Where goods are purchased on credit, there is a time lag between the date of the sale and the day on which csh from that sale is received. Based on her past experience and knowledge, Budg expects 30% of her customers to pay in the month of sale and the remainin 70% in the following month. From the above information, can you produce the expected monthly cash receipts from sales