Success Plc$,$ a newly established Zambian Company deals in the

production and sell of Sanitizers and Masks locally. Expected unit

sales is expected to increases by $50\%$ in quarter One,$70\%$ In Quarter

Two and $75\%$ in Quarter Three and $100\%$ in quarter Four.

ii$).$ Price$/$ Unit will be K$3,500$ in Quarter One, K$2,000$ in Quarter Two,

K$1,500$ in Quarter Three and K$1,000$ in Quarter Four.

iii$).$ At the beginning of the year for $2021($Jan$.)$ expected unit sales is

$500$ Units.

IV$).$ Assume that Success Plc will sell some of these to credit worthy

customers and that of each quarter$$s sales, $80\%$ is collected in the

$1$st Quarter of the sale; $15\%$ is collected in the following quarter; and

$5\%$ is bad debt.

NOTE:

$$ The sanitizers and masks will be packed in a Box consisting of

$100$ sanitizers and $500$ Masks $($This box will constitute a UNIT$).$ A

total of $1,000$ Units will be produced in the first quarter of $2021.$

$$ Production is expected to start in Dec.,$2020.$

Required:

a$).$ Calculate success Plc sales budget for one year on quarterly

basis. Additional Marks will be awarded for good presentation.

$15$ Marks

b$).$ Show the amount on quarterly bad debts and the total bad

debts that will be charged to the income statement as at $31$st Dec.

$2021.2$ Marks

c$).$ Determine the amount of Accounts Receivable as at $31$st Dec.

$2021$ whose amount will be received in the first quarter of $2022.$

$2$ Marks

d$).$ Explain the role that financial planning plays in the budgeting

process? $6$ Marks

TOTAL$=25$ Marks