Q. No. 5

Max Marks 08

SALES BUDGET INCLUDING A SCHEDULE OF EXPECTED CASH BUDGET

Hollow Company manufactures and sells one product only. Following financial information have been obtained for next four quarters of the year 2016:

	Quarter-1	Quarter-2	Quarter-3	Quarter-4
Sales in units	300	400	400	600

Further information

• Price will remain for the first and second quarter Rs. 200 and third and fourth quarter Rs. 190 for each product respectively.
• Sales at 70% realized in the quarter of sales. Balance 30% realized in the next quarter.

Required:

A sales budget, including a schedule of expected cash receipts for the year 2016.