gift shops and department stores throughout the United States. Khloe provided the following information: tober 31 balance in the cash account is $53,817. s are on account. Sales in September were $950,000 and in October were $1,240,000. ber sales are expected to be $2,145,000. e's experience, 70 percent of sales are collected in the month of sale and 28 percent are collected in the month following sale. The ing credit sales are uncollectible. purchases all merchandise on account. Purchases in September were $750,000 and in October were $980,000. November purchases pected to be $2,000,000 as Khloe prepares for the Christmas buying season. Fifteen percent of purchases are paid in the month of while the remainder is paid in the month following the purchase month. Company has nine employees who are paid a total of $48,000 per month. Due to timing issues, about 90 percent of total wages are the month earned and the remaining 10 percent are paid in the following month. or office and warehouse space is $12,300 paid monthly in cash. s average $6,100 per month and are paid in cash. ember, Khloe expects to pay employment taxes of $6,625. Khloe imports product from overseas, customs duty and shipping to the central location of 30 percent of current monthly purchase
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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