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Gibson Ltd operates sportswear stores in Dublin and Cork and has set the following quarterly sales target for international and provlncial rugby shirts for 2013 per the attached schedule (see separate sheet)
Required:
(a) Calculate a quarterly delivery schedule by store analysed by quantity of each shirt type and by shirt size for each quarter of the 2013 plan, which is to be given to the manufacturer.
(b) Prepare a cash budget by quarter for Quartersl to 4 inclusive on the following basis:
(1) Shirts cost €15 delivered; manufacturer provides one quarte/s credit(2) Sale price of shirts is €75; sales are made in cash
(c) What advice would you give to management in circumstances where the international and provlncial boards were likely to introduce a new shirt sponsor in quarter 3 of 2013?
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