EXERCISE 10-12. Budgeted Sales and Cash Receipts [LO 2] Mississippi Retailers expects credit sales in the next quarter as follows: April May June Exercises 399 $ 80,000 90,000 113,000 Prior experience has shown that 70 percent of a month's sales are collected in the month of sale, 20 percent are collected in the month following sale, and the remaining 10 percent are collected in the second month following sale. February and March sales were $90,000 and $100,000, respectively. REQUIRED Estimate budgeted cash receipts for April, May, and June.
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.
![EXERCISE 10-12. Budgeted Sales and Cash Receipts [LO 2] Mississippi Retailers expects
credit sales in the next quarter as follows:
April
May
June
Exercises 399
$ 80,000
90,000
113,000
Prior experience has shown that 70 percent of a month's sales are collected in the month of sale,
20 percent are collected in the month following sale, and the remaining 10 percent are collected in
the second month following sale. February and March sales were $90,000 and $100,000, respectively.
REQUIRED
Estimate budgeted cash receipts for April, May, and June.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8cdfb300-3a1b-48d6-95db-8c34f2bdcfcc%2F381753a3-a94f-46ee-be06-d259ef8d87f2%2Fkjal80o_processed.jpeg&w=3840&q=75)
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