Cash Budgeting Use the information below to prepare a cash receipts budget for Aussie Choice for the months of January, February, and March. Actual net sales were: November December $11,000 $12,100 respectively Budgeted net sales are: January February March $13,200 $14,300 $15,400 respectively Sales are 70% credit and 30% cash. Interest $5,000 is received in March Dividends on investments $5,000 are declared in January however the shares have been disposed of. Aussie Choice budgets to collect accounts receivable as follows: • 50% in the month of sale. • 30% in month after sale. • 20% in second month after sale (10% of these are uncollectable)
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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Use the information below to prepare a cash receipts budget for Aussie Choice for the months of January, February, and March.
Actual net sales were: November December $11,000 $12,100 respectively
Budgeted net sales are: January February March $13,200 $14,300 $15,400 respectively Sales are 70% credit and 30% cash. Interest $5,000 is received in March Dividends on investments $5,000 are declared in January however the shares have been disposed of.
Aussie Choice budgets to collect • 50% in the month of sale. • 30% in month after sale. • 20% in second month after sale (10% of these are uncollectable) |
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