Retro Rocket Sales $($RRS$)$ is a merchandiser that sells model rockets designed to resemble the Saturn V rocket, used in NASA$$s Apollo space program. The rockets are purchased from an overseas manufacturer and sold directly to customers over the internet and through a network of retail outlets. Currently the selling price is $$1,500$ per rocket; the price will increase to $$1,620$ on March $1$ to cover an anticipated increase in costs. Planned sales for the first four months of $20$X$1$ are indicated below.

Period January February March April

Targeted Sales $($in units$)500530620700$

Prepare a Sales Budget for the first quarter of $20$X$1.$

Retro Rocket Sales

Sales Budget

For quarter ended March $31,20$X$1$

January February March Total

Total sales in dollars

Cash Collections: The majority of sales$80\%--$are through retail outlets which purchase on credit. As a rule, $30\%$ of credit sales are collected in the month of sale, $68\%$ are collected the month following the sale, and $2\%$ are never collected. The remaining $20\%$ of sales are to individual purchases over the internet, who purchase using a credit card. As these funds are received into the company$$s bank account overnight, they are counted as cash sales.

Prepare a Cash Collections Budget for the first quarter of $20$X$1.$ Assume that the Accounts Receivable balance at January $1$ will be $$218,400($noting that $$6,240$ of this $(2/70)$ is not expected to be collected$).$

Retro Rocket Sales

Cash Collections Budget

For quarter ended March $31,20$X$1$

January February March Total

Total cash collections