allgate Company has forecast credit sales for the fourth quarter of the year: September (actual) Fourth Quarter: October November December P 100,000 80,000 70,000 120,000 Based on the past experience, 20% of sales are collected in the month of sales, 70% in the following month and 10% are never collected. Prepare a schedule of cash receipts for the company covering the last quarter of the year.
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.
Activity No. 13: Budgeting
Callgate Company has
|
September (actual) Fourth Quarter: October November December |
P 100,000
80,000 70,000 120,000 |
Based on the past experience, 20% of sales are collected in the month of sales, 70% in the following month and 10% are never collected.
Prepare a schedule of cash receipts for the company covering the last quarter of the year.
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