Crew Clothing (CC) sells women's resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and March to be $490,000, $550,000, and $570,000, respectively. Twenty percent of CC's sales are cash, with the remainder collected evenly over two months. During December, CC's total sales were $800,000. 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. Budgeted cash receipts January February March:
Crew Clothing (CC) sells women's resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and March to be $490,000, $550,000, and $570,000, respectively. Twenty percent of CC's sales are cash, with the remainder collected evenly over two months. During December, CC's total sales were $800,000. 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. Budgeted cash receipts January February March:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Crew Clothing (CC) sells women's resort casual clothing to high-end department stores and in its own retail boutiques. CC expects
sales for January, February, and March to be $490,000, $550,000, and $570,000, respectively. Twenty percent of CC's sales are cash,
with the remainder collected evenly over two months. During December, CC's total sales were $800,000. 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.
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Budgeted cash receipts
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January
February
March
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