Bridgeport Inc. has budgeted sales for the second quarter of $340,000 for April; $505,000 for May; and $670,000 for June. Normally, 20% are cash sales and 80% of sales are on account. As well, 30% of the sales on account are normally collected during the month of sale, 50% in the following month, and 20% in the second month following sale. The accounts receivable balance as of April 1 is $250,000. Prepare the schedule of cash collections for the second quarter by month and in total. (Round intermediate calculations and final answers to 0 decimal places, e.g. 15 or 15%.)
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.
Bridgeport Inc. has budgeted sales for the second quarter of $340,000 for April; $505,000 for May; and $670,000 for June. Normally, 20% are cash sales and 80% of sales are on account. As well, 30% of the sales on account are normally collected during the month of sale, 50% in the following month, and 20% in the second month following sale. The
Prepare the schedule of cash collections for the second quarter by month and in total. (Round intermediate calculations and final answers to 0 decimal places, e.g. 15 or 15%.)
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