Consider the following information for a given company. Month Cash Sales Credit Sales Jan $80.000 $350,000 Feb S60.000 $200,000 Mar $5000 $145,000 Apr $45,000 $130,000 May $55000 $170,000 Jun $5000 $150,000 The firm's collection pattern is as follows: 60% in the month of sale 30% one month following sale 10% two months following sale The accounts receivable balance on 1 Jan is $70.000.Of this amount, $60.000 represents uncollected Dec sales and $10.000 represents uncollected Nov sales. Required: Determine the total cash collected during Jan.
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.
Step by step
Solved in 3 steps with 2 images
