Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data: January February March April Total Sales RM60, 000 RM70, 000 RM50, 000 RM30, 000 Total cash receipts in April would be budgeted 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.
Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data:
|
|
January |
February |
March |
April |
|
Total Sales |
RM60, 000 |
RM70, 000 |
RM50, 000 |
RM30, 000 |
Total cash receipts in April would be budgeted to be:
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