January February March April Credit Sales $350,000 $300,000 $200,000 $550,000 Cash Sales $70,000 $90,000 $80,000 $70,000 40% of credit sales are collected in the month of sale, 50% in the month after the sale, and 10% of credit sales are collected the second month after the month of sale. There are no bad debts. Budgeted cash receipts for April would be O $420,000 O $620,000 O $310,000 O $360,000
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.
![January
February
March
April
Credit Sales
$350,000
$300,000
$200,000
$550,000
Cash Sales
$70,000
$90,000
$80,000
$70,000
40% of credit sales are collected in the month of sale, 50% in the month after the sale, and
10% of credit sales are collected the second month after the month of sale. There are no bad
debts. Budgeted cash receipts for April would be
O $420,000
O $620,000
O $310,000
O $360,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e415e89-b15c-4691-b794-c1f1bc8f0e90%2F32afc53a-beaf-4ba3-83bb-6a360f7d5207%2Fm0wf1vhi_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Fundamentals of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781285065137/9781285065137_smallCoverImage.gif)