a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Rooney will report on its first quarter pro forma inc
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.
![I
Rooney Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls.
Rooney has budgeted sales as indicated in the following table. The company expects a 15 percent increase in sales per
month for February and March. The ratio of cash sales to sales on account will remain stable from January through
March
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue Rooney will report on its first quarter pro forma income statement.
Complete this question by entering your answers in the tabs below.
Required Required
B
Complete the sales budget by filling in the missing amounts. (Do not round intermediate
calculations. Round final answers to two decimal places.)
March
Sales
Cash sales
Sales on account
Total budgeted sales
January February
$45,000
115,000
160,000
< Required A
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