Do-Re-Mi Ltd is a retailer of musical instruments and has the following historical collection pattern for its credit sales:
§ 70 per cent collected in the month of sale.
§ 15 per cent collected in the first month after sale.
§ 10 per cent collected in the second month after sale.
§ 4 per cent collected in the third month after sale.
§ 1 per cent uncollectable.
The credit sales have been budgeted for the last seven months of the year, as shown below:
1. Calculate the estimated total cash receipts during October from credit sales
2. Calculate the estimated total cash receipts during the December quarter from credit sales during the quarter.
Table 1 - Summary of financial and other operating information
Note 1: includes materials, wages/salaries, vehicle and machine costs, etc
Note 2: following inspection by surveyors after work implemented
Note 3: initial survey and site analysis
Note 4: investigation & action on complaints.
Proposed strategy for Alpha division for year to 30 November 20X9
It is estimated that the budgeted profit requirement of $20m will be achieved as a consequence of the following:
Staff bonus calculation for the year ended $15November 20X8 using KeyPerformance Indicators (KPI's) based on relative contract factors
(B)* â€“ each KPI score value is positive (+) where the 20X h8 valueshows an improvement over the previous year OR negative (â€“) where the20X8 value shows poorer performance than in the previous year.
Each KPI score value is the % increase (+) or decrease (â€“) in 20X8 as appropriate