Bahjat Oman Company produces and sells scientific calculators. The budgeted selling price per unit is $15. Budgeted unit sales in the first half of the year 2021 is as follows: January 18,000 units, February 14,000, March 28,000, April 42,000, May 35,000 and June 32,000 units. The company's credit policy is to collect 25% of the total sales in the month of sale, and 60% in the month following the sale, and the remaining in the second month following sale. The expected total cash collections in dollars in April is closest to: O a. $271,500 O b. $529,500 O c. None of the given answers O d. $441,000 O e. $572,250 Whinhafthefel atatonantainfela

Bahjat Oman Company produces and sells scientific calculators. The budgeted selling price per unit is $15. Budgeted unit sales in the first half of the year 2021 is as follows: January 18,000 units, February 14,000, March 28,000, April 42,000, May 35,000 and June 32,000 units. The company's credit policy is to collect 25% of the total sales in the month of sale, and 60% in the month following the sale, and the remaining in the second month following sale. The expected total cash collections in dollars in April is closest to: O a. $271,500 O b. $529,500 O c. None of the given answers O d. $441,000 O e. $572,250 Whinhafthefel atatonantainfela

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

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.

Question

Bahjat Oman Company produces and sells scientific calculators. The budgeted selling price per unit is $15. Budgeted unit sales in the
first half of the year 2021 is as follows: January 18,000 units, February 14,000, March 28,000, April 42,000, May 35,000 and June
32,000 units. The company's credit policy is to collect 25% of the total sales in the month of sale, and 60% in the month following the
sale, and the remaining in the second month following sale. The expected total cash collections in dollars in April is closest to:
O a. $271,500
O b. $529,500
Oc.
None of the given answers
O d. $441,000
O e. $572,250
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