4. Al Maha Company makes collections on sales according to the following schedule: 10% in the month of sale 50% in the month following sale 40% in the second month following sale The following sales are expected: Expected Sales $80,000 January February $100,000 March $120,000 Cash collections in March should be budgeted to be: A. $113,000 B. $90,000 C. $94,000 D. $96,000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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