ABC company's sales are 20% cash, and 80% credit. For credit sales the company collects 50% one month after the sale, 30% two months after the sale, and 10% three months after the sale. Budgeted total sales for the upcoming four months are as follows: June budgeted sales $200,000 July budgeted sales $100,000 August budgeted sales $250,000 September budgeted sales $300,000 What is the budgeted amount of total collections that will be collected in September? Question 2 options: a $235,000 b $60,000 c $200,000 d $140,000
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.
ABC company's sales are 20% cash, and 80% credit.
For credit sales the company collects 50% one month after the sale, 30% two months after the sale, and 10% three months after the sale. Budgeted total sales for the upcoming four months are as follows:
June budgeted sales
$200,000
July budgeted sales
$100,000
August budgeted sales
$250,000
September budgeted sales
$300,000
What is the budgeted amount of total collections that will be collected in September?
Question 2 options:
a $235,000
b $60,000
c $200,000
d $140,000
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