LOL CORP. collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6%, in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: Budgeted sales January - P200,000 February P300,000 March P350,000 April-P250,000 Cash collections in April are budgeted to be: A.P321,000 B.P320,000 C.P313,000 D.P292,000
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.
LOL CORP. collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6%, in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:
Budgeted sales
January - P200,000
February P300,000
March P350,000
April-P250,000
Cash collections in April are budgeted to be:
A.P321,000
B.P320,000
C.P313,000
D.P292,000
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