Imagine you are an owner of a company. Listed below are your budgeted monthly unit sales sold at P10 per unit. March April May June July Budgeted Monthly Unit Sales 2,000.00 3,000.00 4,000.00 5,000.00 4,500.00 Using the table below, prepare a sales budget for the month of April, May and June. Budgeted Sales Forecast April May June Total Budgeted Monthly Unit Sales 3,000 4,000 5,000 12,000 Unit Selling Price 10 10 10 Sales Budget 30,000 40,000 50,000 120,000 The beginning balance of Accounts Receivable amounted to P 10,000 which was fully paid in April. 80% of the monthly sales computed in the budgeted sales forecast are collected in the month of sale while 20% of sales are collected the following month. Using the table below, prepare a cash collection budget for the month of April, May and June. Cash Collection Budget April May June Total Accounts Receivable, beg. 10,000 6,000 8,000 24,000 Collection from March 10,000 10,000 Collection from April 24,000 6,000 30,000 Collection from May 32,000 8,000 40,000 Collection from June 40,000 40,000 Total Monthly Cash Collection 34,000 38,000 48,000 144,000
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.
Imagine you are an owner of a company. Listed below are your budgeted monthly unit sales sold at P10 per unit.
|
|
March |
April |
May |
June |
July |
|
Budgeted Monthly Unit Sales |
2,000.00 |
3,000.00 |
4,000.00 |
5,000.00 |
4,500.00 |
Using the table below, prepare a sales budget for the month of April, May and June.
|
Budgeted Sales |
||||
|
|
April |
May |
June |
Total |
|
Budgeted Monthly Unit Sales |
3,000 |
4,000 |
5,000 |
12,000 |
|
Unit Selling Price |
10 |
10 |
10 |
|
|
Sales Budget |
30,000 |
40,000 |
50,000 |
120,000 |
The beginning balance of
Using the table below, prepare a
|
Cash Collection Budget |
||||
|
|
April |
May |
June |
Total |
|
Accounts Receivable, beg. |
10,000 |
6,000 |
8,000 |
24,000 |
|
Collection from March |
10,000 |
|
|
10,000 |
|
Collection from April |
24,000 |
6,000 |
|
30,000 |
|
Collection from May |
|
32,000 |
8,000 |
40,000 |
|
Collection from June |
|
|
40,000 |
40,000 |
|
Total Monthly Cash Collection |
34,000 |
38,000 |
48,000 |
144,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
