Use the information below to answer questions 1.5 The following figures have been taken from the budget of a company called U &H Plc. in the retail trade for the year ended 31 December 2021. January February March April 6,000 7,000 5,000 The following information is available: (i) The selling price per unit is E7 It will increase to E8 per unit from March and in subsequent months. 25% of budgeted sales' revenue is expected to be received in the month of sale. 70% of budgeted sales in the following month while 5% of budgeted sales are expected to result in bad debts. (ii) The budgeted number of units in inventory at the end of each month is equal to the budgeted sales for the following month (iii) The business is seasonal, and, as indicated in the above budget results in April are expected to be similar to those in January.There is a three-month cycle, so the results in May and June are expected to be similar to those in February and March respectively

The sales volumes are obtained by multiplying sales units for each month by the respective selling price (7£ or 8£).1. Sales Volume for January = 5,000 units * £7 per unit = £35,000 2. Sales Volume for February = 6,000 units * £7 per unit = £42,000 3. Sales Volume for March = 7,000 units * £8 per unit = £56,0004. Sales Volume for April = 5,000 units * £8 per unit = £40,000Part 2: Calculate the expected receipt timeline of the budgeted sales:【Explanation】: We are told how the sales revenue will be received in which will be received in the month of sale. The following will be expected in the following month, leaving of sales as bad debts which will not be received.1. Expected receipt in the month of sale: = 25% of monthly sales volume 2. Expected receipt in the month after: = 70% of previous month sales volume Therefore, In January: - Amount received during the month: = (%25 of January sales volume) + (%70 February sales volume of the previous month = £ 0) - The January sales was the first month with 0 sales.= £35,000 * 0.25 + 0In February: - Amount received during the month: = (%25 of February sales volume) + (%70 of January sales volume)= £42000 * 0.25 + £35000 * 0.70Similarly, let's compute for other months to help visualize the news using the above method...