Month Forecast sales
July £80,000
August £50,000
September £100,000
Recent history suggests that revenues are paid by customers 60% in the month of sale, 20% in the month following the month of sale, and 10% in the month after that, with a 10% bad debt occurrence.
In addition Vader has £50,000 of brought forward receivable balance on the 1st July 2012, of which 50% is expected to be collected in July, and the remainder in August.
Produce the cash receipts budget for the third quarter of 2012