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in this video we're gonna put together a schedule of expected cash collections so let's say your company sells bottles of orange juice and you put together your sales budget for the next four quarters you've got quarter one through quarter four and then you've got for the entire year and you've got your budgeted sales in terms of units which is bottles of orange juice and so in the first quarter you expect to sell 200,000 bottles of orange juice for $6 a bottle which would lead to 1.2 million dollars in sales now here's the catch some of these sales are going to be made on credit so we need to know when we're managing our cash we need to say okay how much of this 1.2 million are we going to collect in the same period in Quarter 1 and how much are we gonna collect in future periods because if we're gonna manage our cash we need to know our cash receipts right we're gonna put together a cash budget you want to make sure at no point do we run out of cash so we have to say ok we made 1.2 m

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