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.
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