CC expects sales for January, February, and March to be $420,000, $480,000, and $500,000, respectively. Twenty percent of CC’s sales are cash, with the remainder collected evenly over two months. During December, CC’s total sales were $730,000. CC is beginning its budget process and has asked for your help in preparing the cash budget. Compute CC’s expected cash receipts from customers for each month.
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.
. CC expects sales for January, February, and March to be $420,000, $480,000, and $500,000, respectively. Twenty percent of CC’s sales are cash, with the remainder collected evenly over two months. During December, CC’s total sales were $730,000. CC is beginning its budget process and has asked for your help in preparing the
Compute CC’s expected cash receipts from customers for each month.
Step by step
Solved in 2 steps with 1 images
