Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 70 percent in the month of sale, 25 percent in the month after the sale, and the remaining 5 percent two months after the sale. Sales for the next three months are projected as follows: April, $192,000; May, $210,000; and June, $220,000. Accounts receivable on March 31 was $54,000. 16. The expected total cash collections of Brady, Inc. in June are? a. $176,000 b. $160,600 c. $198,000 d. $216,490 e. $238,100 f. $194,490 g. $216,100 h. None of the above
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.
![Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash
sales are 10 percent of total sales each month. Historically, sales on account have been
collected as follows: 70 percent in the month of sale, 25 percent in the month after the
sale, and the remaining 5 percent two months after the sale. Sales for the next three
months are projected as follows: April, $192,000; May, $210,000; and June, $220,000.
Accounts receivable on March 31 was $54,000.
16.
The expected total cash collections of Brady, Inc. in June are?
a. $176,000
b. $160,600
c. $198,000
d. $216,490
e. $238,100
f. $194,490
g. $216,100
h. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07be42a1-4870-4a19-ae96-6457a6e512e1%2F7c782b3c-f670-4ed3-bc00-7a0cca9f619a%2Fp52qbta_processed.png&w=3840&q=75)
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