A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20x8. Forecast sales are as follows (All values are in thousands of yen). ¥203,(KX) January February ¥227,0KX) March V248,(XX) Sales are 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 are anticipated. Accounts receivable at the beginning of 20X8 are V82,950 (10% of November credit sales of ¥150,000 and 45% of December credit sales of ¥151,000). Prepare a schedule 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.
Prepare aschedule showing sales and cash collections for January. February,and March,20X8
Step by step
Solved in 2 steps
