How much cash will be collected in January? In February? In March? For the quarter in total?
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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November
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December
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January
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February
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March
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Sales revenue. . . . . . .
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$16,500
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$10,000
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$15,800
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$12,000
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$14,600
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25% in the month of the sale
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50% in the month after the sale
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20% two months after the sale
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5% are never collected
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