Budgeted sales in Allen Company are given below: April May $25,000 $95,000 $120,000 Budgeted Cash Sales Budgeted Credit Sales Total Budgeted Sales $50,000 $130,000 $180,000 Collections for sales on account follow a stable pattern as follows: 60% of a month's credit sales are collected in the month of sale and 40% are collected in the month following sale. Given these data, the total of all collections for May should be: $134,000 $109,000
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.
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