March, April, and May sales are $100,000, $120,000, and $125,000, respectively. Atotal of 80% of all sales are credit sales and 20% are cash sales. A total of 60% of creditsales are collected in the month of the sale and 40% are collected in the next month.There are no bad debt expenses. What is the amount of cash collections for April?a. $89,600b. $111,600c. $113,600d. $132,600
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.
March, April, and May sales are $100,000, $120,000, and $125,000, respectively. A
total of 80% of all sales are credit sales and 20% are cash sales. A total of 60% of credit
sales are collected in the month of the sale and 40% are collected in the next month.
There are no
a. $89,600
b. $111,600
c. $113,600
d. $132,600
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
