Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budget) (Budget) (Budget) Credit sales $120,000 $280,000 $310,000 $220,000 Cash sales 20,000 50,000 60,000 24,000 Based on the company's collection history, 42% of credit sales are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February are expected to be:
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.
| 6) Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: |
Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2
(Actual) (Budget) (Budget) (Budget)
Credit sales $120,000 $280,000 $310,000 $220,000
Cash sales 20,000 50,000 60,000 24,000
| Based on the company's collection history, 42% of credit sales are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February are expected to be: |
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