Hart Ltd a wholesaler . His sales are made entirely on credit. In respect of sales any given month he expects 75% to be paid for in the following month, and 25% in the month after that. Budget data relating to 4 months of Harts sales are as follows: November £25,000, December £26,800, January£21,000 and February £21,300. State how much cash he should include in his cash budget for November to April?
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.
Hart Ltd a wholesaler . His sales are made entirely on credit. In respect of sales any given month he expects 75% to be paid for in the following month, and 25% in the month after that.
Budget data relating to 4 months of Harts sales are as follows:
November £25,000, December £26,800, January£21,000 and February £21,300. State how much cash he should include in his
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