Thank you for your comment and I hope the information is useful for your company, Concern Construction! I wish you a Happy New Year and very best regards, Mike
Thank you so much for your comment! And, for tuning into the video. It is certainly nice to hear how the video is helpful for small business owners. Thanks again for the comment! Stay safe and best regards, Mike
Dear Yau Michelle, Yes, the 70%, 20% and 10% are just estimates for the example. Companies review their cash collections pattern and estimate percentages based on their own situation. Also, a company may collect the funds over a different number of months as well. Again, thank you for your comment and please feel free to reach out to me again if you have any additional questions. Best regards, Mike
Thank you for your comment! I am sorry but I don't have a video that focuses on a supply budget, but there is a video on the purchases or production butdet. Perhaps you can modify one of these to include supply lead times and product delivery lag times to adjust the purchases amounts accordingly. Thank you for your comment, Anthony. Best regards, Mike Werner
Thank you for watching my video and a huge thank you for your comment. I think the November collections that are collected in January are calculated in the video at about 9:20 minutes into the video. That is, this explanation begins at 9 minutes and 20 seconds into the video. What this section of the video will show is that for the example company some of the sales are sold on customer charge accounts so not all of November's sales are collected in November. Instead, since some of the sales are made on charge accounts, some of November's sales are collected in November, some are collected in December, and some are collected in January. This, of course would vary from one company to the next. For a company that sells all of their products for cash and on credit cards, they would collect virtually all of the cash in the month of the sale. It's only when a company opens charge accounts for it's customers and sells on credit. This should not be confused with credit card sales. The cash for credit card sales is generally deposited by the credit card into the merchant's bank account on the night of the sale or the next day so accepting credit cards is almost like accepting cash, except the credit care company will charge a fee. I hope this information is helpful. If you have further questions please leave another comment so I can help out. Best regards, Mike
Hi BooTee. Thank you for your comment. Actually, in this example, the sales are a combination of sales on account with cash sales mixed in. Then the cash collections budget calculates the amounts that will be collected in the month of the sale, the next month, and finally in the second month following the sale. Some companies will separate their cash sales and credit sales (sales on account). When this is done, the collections from credit sales (sales on account) are calculated as demonstrated in the video and then a row is added across the bottom for the cash sales, which are collected in the month of the sale, of course. I hope this is helpful. Thanks again for the comment!