question archive INFORMATION AND DATA BASES FOR THE PROJECTIONS AND CONFORMATION OF THE BUDGETS EMPRESAS SOTOMAYOR lists below historical financial data, basis for projections and required budget forecasts
INFORMATION AND DATA BASES FOR THE PROJECTIONS AND CONFORMATION OF THE BUDGETS EMPRESAS SOTOMAYOR lists below historical financial data, basis for projections and required budget forecasts
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INFORMATION AND DATA BASES FOR THE PROJECTIONS AND CONFORMATION OF THE BUDGETS
EMPRESAS SOTOMAYOR lists below historical financial data, basis for projections and required budget forecasts.
SALES PER MONTH DURING THE PAST YEAR 20X1
JANUARY $550,000 FEBRUARY $825,000 MARCH $575,000
APRIL $870,000 MAY $1,080,000 JUNE $1,065,000
JULY $1,070,000 AUGUST $1,060,000 SEPTEMBER $1,180,000
OCTOBER $1,140,000 NOVEMBER $1,290,000 DECEMBER $1,460,000
I. Sales Projection: 20X2
After having consulted a Committee of Managers of the company, it was agreed that the business plans and strategies, it was considered appropriate, 45% increase in sales reported during the months of last year 20x1. All sales are estimated on credit.
Projection of charges based on the projection of monthly sales:
? 75% of projected sales for each month (January, February, March, etc.) are projected to be collected during the same month (January, February, March, etc.).
o Due to a new collection policy, a two (2) % discount will be offered, if customers pay within ten days from the invoice date. It is projected that 3/4 of the clients will accept this payment term.
? 12% of the sales of each month are projected to be collected the month following the month of the sale. For example: January sales collected in February and so on.
? 10% of each month's sales are projected to be charged two months following the month of the sale. For example: January sales collected in March.
? 3% of each month's sales are projected to be charged three months following the month of sale.
o Due to the economic indicators and the financial forecasts of the experts, it is advisable to consider that, of this projected collection product, 2.75% is uncollectible. For example: January sales collected in April.
Emergency Situations Policy.
? Due to considerations and lessons learned from the Hurricane Maria phenomenon, company officials have recommended that after determining and calculating the collection projections for each month, appropriate (separate) 10% of the projected collections, as a fund to alleviate and deal with such emergencies. This policy implies that such funds are not to cover disbursements of operating costs and expenses that are projected for the budget year.
The projections of sales, collections and emergency situations are key for the formulation, structuring and calculations of the projections of the Sales Budget and Sales Collections.
