Name: Rubis, Nori Jayne Date: February 17, 2022

Section: SBENT-2B Group No.: 5

Forecasting: Estimating sales using Percentage of Sales Method

From the following data of Nature’s Herbs Company, prepare a sales forecast and schedule of cash receipts f
Based on past experience, 20% of sales are collected in the month of sales, 70% in the following month, and
Nature’s Herbs Company has forecast credit sales for the fourth quarter of the year:

MONTHS SEPT OCT

SALES 100,000 80,000

COLLECTIONS OF CASH
20% CURRENT SALES 20,000 16,000

80% PREVIOUS MONTH SALES 80,000

TOTAL COLLECTIONS/MONTH 20,000 96,000

bruary 17, 2022

ecast and schedule of cash receipts for the company covering the last quarter of the year.
les, 70% in the following month, and 10% are never collected.
of the year:

NOV DEC MONTHS NEVER COLLECTED

70,000 120,000 September 10% 10,000

ONS OF CASH 10,000

14,000 24,000 October 10% 8,000

64,000 56,000 10,000

8,000
78,000 80,000 November 10% 7,000

10,000
8,000
7,000
Decemeber 10% 12,000
TOTAL OF NOT COLLECTED
10,000

18,000

25,000

37,000
90,000