In the coming year, Swifty, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $18 to retailers throughout the country. All sales will be made on account. An expected 74% of sales will be collected within the quarter of the sale, and another 21 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 29,900 43,500 51,500 80,500 Prepare Swifty, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price $ $ $ $ $ Budgeted sales revenue $ $ $ $ $ Cash Receipts Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts 1st quarter sales $ $ $ $ $ 2nd quarter sales 3rd quarter sales 4th quarter sales Totals $ $ $ $ $
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 the coming year, Swifty, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $18 to retailers throughout the country. All sales will be made on account. An expected 74% of sales will be collected within the quarter of the sale, and another 21 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||
| Budgeted sales units | 29,900 | 43,500 | 51,500 | 80,500 |
Prepare Swifty, Inc.'s,
| Sales Budget | ||||||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Annual | ||||
| Budgeted units sold |
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| Budgeted sales price | $
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$
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$
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$
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$
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| Budgeted sales revenue | $
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$
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$
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$
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$
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| Cash Receipts Budget | ||||||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| 1st quarter sales | $
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$
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$
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$
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$
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| 2nd quarter sales |
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| 3rd quarter sales |
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| 4th quarter sales |
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| Totals | $
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$
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$
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$
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$
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