Ivanhoe Company, a retailer of camping supplies has budgeted activity for January using the following data: January cash sales January credit sales Collections from December credit sales Selling and administrative costs (paid in month of purchase) Depreciation expense Merchandise Inventory, January 1 Merchandise Inventory, January 31 Cost of goods sold is 30% of Cooper's selling price All purchases are paid in cash Credit sales are collected 60% in the month of sale, 30% in the following month, and 10% is deemed uncollectible What is Ivanhoe's budgeted cash disbursements for January? Total January disbursements $ $59,000 386,000 155,000 59,000 22,000 199,000 211,000
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.
![Ivanhoe Company, a retailer of camping supplies has budgeted activity for January using the following data:
January cash sales
January credit sales
Collections from December credit sales
Selling and administrative costs (paid in month of purchase)
Depreciation expense
Merchandise Inventory, January 1
Merchandise Inventory, January 31
Cost of goods sold is 30% of Cooper's selling price
All purchases are paid in cash
Credit sales are collected 60% in the month of sale, 30% in
the following month, and 10% is deemed uncollectible
What is Ivanhoe's budgeted cash disbursements for January?
Total January disbursements $
$59,000
386,000
155,000
59,000
22,000
199,000
211,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb92d4b66-19f7-4a80-a03b-036a0059c853%2Feb12ca2a-6bfc-404d-ba02-295aea36214f%2Fsofr2cu_processed.png&w=3840&q=75)
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