Gecko Company's budgeted monthly sales are as follows: April $220,000, May $260,000, June $190,000, and July $300,000. Sales are 70% cash and 30% on account. Gecko collects 40% of it accounts receivable in the month of the sale and 60% in the month following the sale. Cost of go sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's c of goods sold. All inventory purchases are paid 10% in the month of purchase and 90% in the Following month. What are Gecko's budgeted cash collections for the month of June? O $155,800
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 2 steps