Company K's monthly sales are 20% cash and 80% credit. Of the credit sales, 70% are received in the month after the initial sale, 20% in the second month after the initial sale, and 10% in the third month after the initial sale. Cash sales for the previous three months are, as follows: January $190,000 February $215,000 March $187,000 What is the budgeted cash inflows that Company K will receive in the month of February?
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.
Company K's monthly sales are 20% cash and 80% credit. Of the credit sales, 70% are received in the month after the initial sale, 20% in the second month after the initial sale, and 10% in the third month after the initial sale. Cash sales for the previous three months are, as follows:
- January $190,000
- February $215,000
- March $187,000
What is the budgeted
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