Feline Frills, Inc
Income statement Forecast for 2020
		1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Sales		$ 28,400.00	$ 34,850.00	$ 30,000.00	$ 42,780.00	$ 136,030.00
Cost of goods sold		15,620.00	19,168.00	16,500.00	23,529.00	74,817.00
Gross Profit		12,780.00	15,683.00	13,500.00	19,251.00	61,214.00
Selling Expense		3,124.00	3,834.00	3,300.00	4,706.00	14,963.00
Admin Expense		6,532.00	8,015.50	6,900.00	9,839.40	31,287.00
Income(Profit) before Tax		3,082.00	3,791.00	3,258.00	4,663.00	14,793.00
Tax Expense		1,233.00	1,516.00	1,303.00	1,865.00	5,917.00
Net Income		1,846.00	2,272.00	1,952.00	2,795.00	8,866.00

Build a Cash Receipts Budget
Use the sales for each quarter from the sales numbers from problem 1
Assume all sales are on account (credit sales)
30% of current quarter sales are collected in the current quarter and 70% are collected in the following quarter.
Ignore accounts receivable write-offs (uncollectible accounts).
Calculate how much cash will be collected each quarter
Calculate how much cash will be collected for the year

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Credit Sales	$ 28,400	$ 34,850	$ 30,000	$ 42,780	$ 136,030
1st Quarter
Sales collected from December, 2019	$ 24,890
30% of 1st quarter sales
2nd Quarter
70% of 1st quarter sales
30% of 2nd quarter sales
3rd Quarter
70% of 2nd Quarter Sales
30% of 3rd quarter sales
4th Quarter
70% of 3rd Quarter Sales
30% of 4th quarter sales
Total Budgeted Cash Receipts