Oakton Furniture provided the following Information relevant to its sales for December Year 1 and the first quarter of Year 2: February Year 2 (Budgeted) $ 164,000 $ 39,000 Credit sales Cash sales Multiple Choice 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: O O $44,160. $54,720. $60,000. December Year 1 January Year 2 (Actual) (Budgeted) $ 69,000 $ 149,000 $ 19,000 $ 34,000 $194,300. March Year 2 (Budgeted) $ 119,000 $ 21,000
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.
![Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2:
January Year 2 February Year 2
(Budgeted)
$ 149,000
$ 34,000
Credit sales
Cash sales
Multiple Choice
O
O
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:
$44,160.
$54,720.
December Year 1
$60,000.
(Actual)
$ 69,000
$ 19,000
$194,300.
(Budgeted)
$ 164,000
$ 39,000
March Year 2
(Budgeted)
$ 119,000
$ 21,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d494b17-8b36-49e0-a6a1-3408f9cee0a7%2F6df21d9c-03b1-4aa5-8a5e-74700b6048bd%2Fcpzme8_processed.png&w=3840&q=75)
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