3.3 Tutorial Questions 3.3.1 Cash Budget 1. A firm reported actual sales of RM65,000 in the month of June and RM70,000 in July. The sales forecasts indicate that sales are expected to be RM85,000, RM92,000 and RM95,750 for the months of August, September and October, respectively. Sales are 60% cash and 40% credit and credit sales are collected evenly over the following 2 month. No other cash receipts were received. What are the firm's expected cash receipts for the month August, September and October? cash disbursement
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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