Prepare a sales budget including a column for each year in and a column for the total. The budgets should also include a schedule of expected cash collection, by year and in total. Make your assumptions about the type of sales (cash versus credit) and your credit terms clear.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare a sales budget including a column for each year in and a column for the total. The budgets should also include a schedule of expected cash collection, by year and in total.
Make your assumptions about the type of sales (cash versus credit) and your credit terms clear.

Years
Sales Volume:
Revenues ($100)
Variable Costs
($60))
Contribution
Margin
Fixed Costs
Operating
Income
2023
4000
400,000
240,000
$120,000
2024
$40,000
5000
500,000
300,000
2025
$0
6000
$160,000 $200,000 $240,000
600,000
360,000
$0
$200,000 $240,000
2026
7000
700,000
420,000
$0
2027
$280,000
8000
800,000
$280,000 $320,000
480,000
$0
$320,000
Transcribed Image Text:Years Sales Volume: Revenues ($100) Variable Costs ($60)) Contribution Margin Fixed Costs Operating Income 2023 4000 400,000 240,000 $120,000 2024 $40,000 5000 500,000 300,000 2025 $0 6000 $160,000 $200,000 $240,000 600,000 360,000 $0 $200,000 $240,000 2026 7000 700,000 420,000 $0 2027 $280,000 8000 800,000 $280,000 $320,000 480,000 $0 $320,000
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