me the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $251,000, $221,000, and $212,000, resp -Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the s The cost of goods sold is always 70% of sales. Each month's ending inventory equals 20% of next month's cost of goods sold. 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the follow • Monthly selling and administrative expenses that are paid in cash in the month incurred total $26,500. • Monthly depreciation expense is $26,000. expected cash collections from customers
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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