Golden Corporation is preparing its cash budget for the next year. Sales are expected to be at P100,000 for January; P200,000 for February; P300,000 for March; and P100,000 for April. Approximately half of the sales are cash basis and the other half are on account or on credit. Of the credit sales, 70% is collected on the following month; 20% on the second month, and 10% on the third month. What is the budgeted collection for April? 1. P 130,000 2. P 180,000 3. P 260,000 4. P 360,000 Group of answer choices 1 2 3 4
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.
Golden Corporation is preparing its
1. P 130,000
2. P 180,000
3. P 260,000
4. P 360,000
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