A Scndai clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales arc as follows (All values arc in thousands of yen). January ¥203.(XX) February ¥227,000 March_ ¥248,(MM) Sales arc 40% cash and 60% on credit. Fifty-five percent of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month. No uncollectible accounts arc anticipated. Accounts receivable at the beginning of 20X8 arc ¥82,950 (10% of November credit salesof ¥150,000 and45% of Decembercredit sales of ¥ 151,000). Prepare aschedule showing sales and cash collections for January. February,and March,20X8.
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.
A Scndai clothing wholesaler was preparing its sales budget for the first quarter of 20X8.
January ¥203.(XX) February ¥227,000 March_ ¥248,(MM)
Sales arc 40% cash and 60% on credit. Fifty-five percent of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month. No uncollectible accounts arc anticipated.
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