January February March April May June oration had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $60,000 $160,000 $65,000 $180,000 $44,000 $39,000 $49,000 $90,000 $140,000 $124,000 Collections on sales: 50% in month of sale 45% in month following sale 5% in second month following sale $210,000 $180,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the followe information has been assembled: The accounts receivable balance on January 1 of the current year was $74,000, of which $50,000 represents uncollected December sales an $24,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:
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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