Ralpha company is selling a product of $35 per unit. The estimated sales in units would be March, April, May, June and July 2,100, 2,400, 3,000, 2,300 and 2,800 units, respectively. A 10% cash discount would be provided in collection from accounts receivable. Collection from receivables normally have the following pattern: 60% in the month of sale, 30% in the month following the sale, and 10% in the second month following the sale. What would be the total collection from accounts receivables in the month of March, April, May, and June? Select one: a. March, $37,000, April $67,600, May $90,000 and June $80,000. b. March, $38,000, April $77,600, May $92,000 and June $81,000. c. March, $39,000, April $67,600, May $88,150 and June $87,570. d. March, $39,690, April $67,410, May $89,250 and June $83,370. e. None of the above.
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.
Ralpha company is selling a product of $35 per unit. The estimated sales in units would be March, April, May, June and July 2,100, 2,400, 3,000, 2,300 and 2,800 units, respectively. A 10% cash discount would be provided in collection from accounts receivable. Collection from receivables normally have the following pattern: 60% in the month of sale, 30% in the month following the sale, and 10% in the second month following the sale. What would be the total collection from accounts receivables in the month of March, April, May, and June?
Select one:
a. March, $37,000, April $67,600, May $90,000 and June $80,000.
b. March, $38,000, April $77,600, May $92,000 and June $81,000.
c. March, $39,000, April $67,600, May $88,150 and June $87,570.
d. March, $39,690, April $67,410, May $89,250 and June $83,370.
e. None of the above.
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