The accountant of the Anderson Company has developed the following collection pattern, as all sales are on credit: 70% of the company's sales are collected in the same month as the sale, 20% are collected in the next month, and 10% in the month after that. The budgeted sales for the company are: July $200,000, August $300,000, September $350,000, and October $250,000. The cash collections for October are going to be: Multiple Choice $175,000 О $275,000 $70,000 $30,000
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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