A company budgets sales for the next three months as follows. The company's sales are 40% for cash and 60% on credit. All credit sales are fully collected in the month after the sale. Total sales were $300,000 in April. May Budgeted sales $ 320,000 Prepare a schedule of cash receipts from sales for May, June, and July. June July $ 310,000 $ 290,000 Schedule of Cash Receipts from Sales May June $ 320,000 $ Sales Cash receipts from: Cash sales Collections of prior period sales 310,000 $ July 290,000
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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