Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of the sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. Based on the following are budgeted sales data, what would be the budgeted total cash receipts in April? Total Sales Month $60,000 January $70,000 February $50,000 March $30,000 April Question 15 options: $27,230 $36,230 $38,900 $47,900
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 the sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. Based on the following are budgeted sales data, what would be the budgeted total cash receipts in April?
Total Sales Month
$60,000 January
$70,000 February
$50,000 March
$30,000 April
Question 15 options:
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$27,230 |
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$36,230 |
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$38,900 |
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$47,900 |
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