Boise Boots prepared the following sales budget: Cash Sales Month March $17.000 $37.000 $37,000 $50,000 April May June Credit Sales $12,000 $15,000 $36,000 $52,000 Credit collections are 10% two months following the sale, 55% in the month following the sale and 30% in the month of sale. The remaining 5% is expected to be uncollectible. What are the total cash collections in May at Boise Boots? A. $73.000 OB. $20,250 OC. $57,250 OD. $15,450
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
