All of Ellie Corporation's sales are on account. 40% of the sales on account are collected in the month of sale, 40% in the month following sale, and 20% are collected in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March?
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.
Dd.45.
![All of Ellie Corporation's sales are on account. 40% of the
sales on account are collected in the month of sale, 40% in
the month following sale, and 20% are collected in the
second month following sale. The following are budgeted
sales data for the company: January February March April
Total sales $50,000 $60,000 $40,000 $30,000 What is the
amount of cash that should be collected in March?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2ee2641-7c60-4f65-a663-59c8b8b8fc04%2F6ba43fd3-d5cc-45d4-8654-1f9413afe894%2Fo28b99_processed.jpeg&w=3840&q=75)
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