SALES BUDGET – INCLUDING A SCHEDULE OF EXPECTED CASH BUDGET Hollow Company manufactures and sells one product only. Following financial information have been obtained for next four quarters of the year 2022: Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales in units 300 400 400 600 Further information • Price will remain for the first and second quarter Rs. 200 and third and fourth quarter Rs. 190 for each product respectively. • Sales at 70% realized in the quarter of sales. Balance 30% realized in the next quarter. Required: A sales budget, including a schedule of expected cash receipts for the year 2022.
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.
SALES BUDGET – INCLUDING A SCHEDULE OF EXPECTED
Hollow Company manufactures and sells one product only. Following financial information have been obtained for next four quarters of the year 2022:
Quarter-1 Quarter-2 Quarter-3 Quarter-4
Sales in units 300 400 400 600
Further information
• Price will remain for the first and second quarter Rs. 200 and third and fourth quarter Rs. 190 for each product respectively.
• Sales at 70% realized in the quarter of sales. Balance 30% realized in the next quarter.
Required:
A sales budget, including a schedule of expected cash receipts for the year 2022.
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