Apollo Corporation produces and sells a single product, sewing machines, for $100 per unit. Budgeted sales for the next three months are given below: Unit Sales June 76,000 July 80,000 August 85,000 All sales are on credit and are collected in the following pattern: 30% in the month of sales and the remaining 70% in the month following the sale.
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.
Apollo Corporation produces and sells a single product, sewing machines, for $100 per unit. Budgeted sales for the next three months are given below:
|
|
Unit Sales |
|
June |
76,000 |
|
July |
80,000 |
|
August |
85,000 |
All sales are on credit and are collected in the following pattern: 30% in the month of sales and the remaining 70% in the month following the sale.
1. What is the amount of sales revenue reported on the company’s
multiple choice 1
2. Past experience has shown that end-of-month inventory levels must equal 20% of the following month’s unit sales. How many units are required to be produced in July?
multiple choice 2
3. In July, how much cash the company can collect from sales?
multiple choice 3
4. In the company’s balance sheet dated July 31, what is the balance of
multiple choice 4
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