Gisi Ltd provides the following sales projections for the next four months:
July
August
September
October
$42,000
$54,000
$66,000
$36,000
Actual sales in May were $21,000 and in June were $33,000.
Past records reveal that approximately:
\begin{itemize}
\item 40% of sales are for cash and receive a 3% discount
\item 75% of credit customers pay the month after sale, with the rest the following month (i.e. two months after sale) if they pay
\item 5% of credit customers never pay
\end{itemize}
Inventory is sold at a mark-up of 200% (i.e. the cost price is one-third of the selling price) and Gisi requires closing inventory to be a half (1/2) of the following month's cost of goods sold. Inventory at 30 June 2010 was valued at $5,000.
a) Calculate the estimated total receipts from customers for each of the months July, August and September.
\begin{tabular}{|l|l|l|l|l|}
\hline
Month of sale & Sales & July & August & September \\
\$ & \$ & \$ & \$ \\
\hline
May & 21 000 & 2 520 & & \\
June & 33 000 & 14 850 & 3 960 & \\
July & 42 000 & 16 296 & 18 900 & 5 040 \\
August & 54 000 & & 20 952 & 24 300 \\
September & 66 000 & & & 25 608 \\
\hline
Total & & 33 666 & 43 812 & 54 948 \\
\hline
\end{tabular}
