OBJ. 5 V Total cash collected in August, $128,000 EX 22-19 Schedule of cash collections of accounts receivable Office Universe Supplies Inc. has “cash and carry" customers and credit customers. Office Universe estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2012 are as follows: August September $120,000 150,000 October 220,000 The Accounts Receivable balance on July 31, 2012, was $80,000. Prepare a schedule of cash collections from sales for August, September, and October.
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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I was wondering if you maybe have results for these budgets as I have problem solving them!
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