Meredith Company has budgeted sales for the upcoming months as follows: April $ 456,000 May $ 470,000 June $ 496,000 July $ 524,000 August $ 501,000 September $ 480,000 30% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 45% in the month of sale, 35% in the month following the sale, and 6% in the second month following the sale. a. Compute Meredith Company’s cash receipts for June. (Do not round intermediate calculations.) b. Compute Meredith Company’s cash receipts for July. (Do not round intermediate calculations.) c. Compute Meredith Company’s cash receipts for August. (Do not round intermediate calculations.)
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.
Vishal
Meredith Company has budgeted sales for the upcoming months as follows:
April $ 456,000
May $ 470,000
June $ 496,000
July $ 524,000
August $ 501,000
September $ 480,000
30% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 45% in the month of sale, 35% in the month following the sale, and 6% in the second month following the sale.
a. Compute Meredith Company’s cash receipts for June. (Do not round intermediate calculations.)
b. Compute Meredith Company’s cash receipts for July. (Do not round intermediate calculations.)
c. Compute Meredith Company’s cash receipts for August. (Do not round intermediate calculations.)
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