In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of ₱50,000 on marketable securities will be received in December. How much is the total cash receipts in November?
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.
In preparation for the quarterly
(a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later.
(b) Interest income of ₱50,000 on marketable securities will be received in December.
How much is the total cash receipts in November?
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