Create a schedule of cash collections

Question

The following is the budget for a new high tech product launched in July:

                                      July     August

Expected Sales in Units   2000      3000
Selling price per unit        50          50
Total Sales                   100000   100000

The actual sales were:

                                 July      August
Actual sales in units   1000       2500
Selling price per unit   50           50
Total Sales               50000    125000

Q1. Create a schedule of cash collections for the budgeted sales for July and August. Assume that 80% of sales are collected in the month of sale and the remaining 20% of sales are collected the following month.

Q2. What strategic considerations should Mary take into account? Explain.