A company is preparing for a monthly sales budget for Jan, Feb, & Mar. Sales are 100% on credit. Credit sales for Jan, Feb, and Mar are $140, $180, and $160, respectively. Cash collections are made in - the month of sale: 50% - a month after sale: 30% - two month after sale: 15% - uncollectible: 5% (recognized in the month of sale) Q1. Total cash collection in March?
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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