. Alona company expects its June sales to be P300,000, which is 25% higher than its May sales. Purchases were P200,000 in May and are expected to be P240,000 in June. All sales are on credit and are collected as follows: 80% in the month of sales and 20% in the following month. All payments in the months of sales are given 2% discount. Sixty percent of purchases are paid in the month of purchase to take advantage of purchase term of 1/10,n/40. The remaining amount is paid in the following month. The beginning cash balance on June 1 is P20,000. The ending cash balance on June 30 would be: P64, 160 P73,000 P80, 640 P85,440 2. Lopez Company has a collection schedule of 60% during the month of sales, 15% the following month, and 15%subsequently. The total credit sales in the current month of September were P80,000 and total collections in September were P57,000. What were the credit sales in July? P90,000 P30,000 P45,000 P32,000 Ple
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.
1. Alona company expects its June sales to be P300,000, which is 25% higher than its May sales. Purchases were P200,000 in May and are expected to be P240,000 in June. All sales are on credit and are collected as follows: 80% in the month of sales and 20% in the following month. All payments in the months of sales are given 2% discount. Sixty percent of purchases are paid in the month of purchase to take advantage of purchase term of 1/10,n/40. The remaining amount is paid in the following month. The beginning cash balance on June 1 is P20,000. The ending cash balance on June 30 would be:
- P64, 160
- P73,000
- P80, 640
- P85,440
2. Lopez Company has a collection schedule of 60% during the month of sales, 15% the following month, and 15%subsequently. The total credit sales in the current month of September were P80,000 and total collections in September were P57,000. What were the credit sales in July?
- P90,000
- P30,000
- P45,000
- P32,000
Please help me with this. Thanks a lot!
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