Beyonce Company estimates its sales at 4,000 auto mufflers in the first quarter, sales will increase to 4,400 auto mufflers in the second quarter and to 5,000 mufflers in the third quarter. Each auto muffler sells for $75. All sales are on credit. 70% of the credit customers pay within the quarter of the sale and 30% in the quarter following the sale. Cash collections for the second quarter are budgeted at Question 21 options: $309,000 $315,000 $321,000 $330,000
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.
Beyonce Company estimates its sales at 4,000 auto mufflers in the first quarter, sales will increase to 4,400 auto mufflers in the second quarter and to 5,000 mufflers in the third quarter. Each auto muffler sells for $75. All sales are on credit. 70% of the credit customers pay within the quarter of the sale and 30% in the quarter following the sale.
Cash collections for the second quarter are budgeted at
Question 21 options:
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$309,000 |
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$315,000 |
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$321,000 |
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$330,000 |
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