In the coming year, Sheridan, 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 $16.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% 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:
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.
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Budgeted sales units
|
27,000 | 40,000 | 60,000 | 73,000 |
Prepare Sheridan, Inc.'s
Sales Budget
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1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Annual | ||||
Budgeted units sold
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enter a number of units | enter a number of units | enter a number of units | enter a number of units | enter a number of units | |||
Budgeted sales price
|
$enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||
Budgeted sales revenue
|
$enter a total dollar amount | $enter a total dollar amount | $enter a total dollar amount | $enter a total dollar amount | $enter a total dollar amount |
Cash Receipts Budget
|
||||||||
---|---|---|---|---|---|---|---|---|
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
1st quarter sales
|
$enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||
2nd quarter sales
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
3rd quarter sales
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
4th quarter sales
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
Totals
|
$enter a total amount | $enter a total amount | $enter a total amount | $enter a total amount | $enter a total amount |
Determine the Net
Net Accounts Receivable | $enter the net accounts receivable in dollars |
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