Five Friends Relocation Company prepared the following sales budget: Cash Sales Credit Sales $16,000 $12,000 $38,000 $11,000 $43,000 $42,000 $55,000 $52,000 Month March April May June Credit collections are 32% in the month of sale, 40% in the month following the sale, and 20% two months following the sale. The remaining 8% is expected to be uncollectible. What is the total cash received in April to account for the April sales at Five Friends Relocation Company? OA. $41,840 OB. $3,520 OC. $3,840 D. $41,520 CITE
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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