Maritime Corporation collects 45% of a month's sales in the month of sale, 40% in the month following sale, and 15% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are: August budgeted sales $280,000 September budgeted sales $250,000 October budgeted sales $360,000 November budgeted sales $290,000 The amount of cash that will be collected in November is budgeted to be OA. $290,000 OB. $312,000 OC. $130,500 OD. $300,000
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.
5
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
