Question

Learning Objective: Estimate Receipts
Preston's Parties specilized in custom birthday parties for children for an average price of $1600. He receives a 20% deposit two months in advance, a payment of 50% one month in advance and the remaining 30% on the day of the party. Preston anticipates the following number of parties for each of the next six months:
March	5
April	3
May	15
June	4
July	5
August	2

Receipts Budget
	March	April	May	June	July	August	Total Receipts for Period
March Sales
April Sales
May Sales
June Sales
July Sales
August Sales
Total	-	-	-	-	-	-	-

Answer 1

Solution Step-1: Calculate the expected revenue from March to August Month Revenue No. of parties 5 3 March April May June July August Total Price per party $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $8,000 $4,800 $24,000 $6,400 $8,000 $3,200 $54,400 5 2 Step-2: Compute estimated receipts March April May June July August $2,400 $2,400 $4,800 March Sales April Sales May Sales June Sales July Sales August Sales Total $1,440 $12,000 $1,280 $7,200 $3,200 $1,600 Total receipts for Period $2,400 $3,840 $24,000 $6,400 $8,000 $3,200 $47,840 $1,9201 $4,000 $640 $6,560 $2,400 $1,600 $4,000 $9,600 $14,720 $12,000 $960 $960

To see the formulas, please see the image below:

с D E F G H I Solution Step-1: Calcula Month No. of parties Revenue March April May June July August Total Price per party 1600 1600 1600 1600 1600 1600 15 14 =C6D6 =C7 D7 =C8D8 =C9*D9 =C10*010 -C11D11 =SUM(E6:E11) 10 11 12 13 14 Step-2: Compi March April May June July August Total receipts for Period -SE$ 6*30% SE$ 7*50% ESE$82096 March Sales April Sales May Sales June Sales July Sales August Sales Total | SE$ 7*30% |-$E$8*50% SE$9*20% $E$8*30% =$E$9*50% =SE$ 10*20% =$E$9*30% SE$ 10*50% =SE$1120% SUM(F17:F22) 21 -SUM(C17:H17) -SUM(C18:118) -SUM(C19:H19) -SUM(C20:H20) =$E$ 10-30% -SUM(C21:H21) =$E$ 11 50% =$E$11.30% SUM(C22:H22) SUM(G17:22) SUM(H17:H22) SUM(117:122) =SUM(C17:C22) SUM(D17:022) -SUM(E17:E22)