Question A company is preparing its cash receipts budget. It expects that 90% of its sales will be on credit and 10% will be in cash. It expects 70% of its credit sales to be paid in the month of the sale, 25% to be paid in the month following the month of the sale, and the remaining 5% to be paid two months after the month of the sale. It expects the following sales: March April May June July August September What is the company's expected accounts receivable balance on July 31? $557,100 $167,400 $419,850 Sales $500,000 $340,000 $450,000 $650,000 $620,000 $600,000 $550,000 O $196,650 None of the above.
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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