7. Avalos Corporation makes one product with a selling price of $100 per unit. All sales are on credit with 40% collected in the month of sale and 60% in the following month. The company's sales budget follows: Budgeted sales in units: January z aldal February March 4,000 4,200 5,400 What does the company expect to collect during February from its sales?
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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