Use the information below for Nuthatch Corporation to answer the question that follow. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$316,400 b.$295,200 c.$276,500 d.$280,000
Use the information below for Nuthatch Corporation to answer the question that follow. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$316,400 b.$295,200 c.$276,500 d.$280,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Use the information below for
Nuthatch Corporation to answer the
question that follow. Nuthatch
Corporation began its operations on
September 1 of the current year.
Budgeted sales for the first three
months of business-September,
October, and November are $260,000,
$375,000, and $400,000, respectively.
The company expects to sell 30% of its
merchandise for cash. Of sales on
account, 80% are expected to be
collected in the month of the sale and
20% in the month following the sale.
The cash collections expected in
November from accounts receivable
are projected to be
a.$316,400
b.$295,200
c.$276,500
d.$280,000
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