Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (25% cash) $400,000 $600,000 $1,000,000 The company collects 70% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February. A. $405,000 B. $600,000 C. $555,000 D. $465,000
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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|
Jan
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Feb
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March
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|
Sales
(25%
cash) |
$400,000
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$600,000
|
$1,000,000
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