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

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…

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…