Cash Receipts from Credit Sales Walmart's budgeted sales are as follows: January $150,000 February $160,000 March $172,000 The company expects to collect 75% of a month's sales in the month of sale and 25% in the following month. Question - What are the cash collections for February? Show your work. You may answer below or use attached spreadsheet.
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.
Cash Receipts from Credit Sales
Walmart's budgeted sales are as follows:
January $150,000
February $160,000
March $172,000
The company expects to collect 75% of a month's sales in the month of sale and 25% in the following month.
Question - What are the cash collections for February? Show your work.
You may answer below or use attached spreadsheet.
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