ing year is P900,000. A proposed relaxation of credit standards increase the Accounts receivable balance by P25,000. The average collection period is expected to increase from 20 to 25 days. How much is the budgeted credit sales of Pine Co. if the increase in average collection period to 25 days push through? (360 day year
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.
Pine Co. budgeted credit sales for the coming year is P900,000. A proposed relaxation of credit standards increase the
a. 1,080,000
b. 2,520,000
c. 620,000
d. 1,660,000
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