shown below are the budgeted sales for ABC Company for the next five months. All sales are made on account. November December January February March Budgeted Sales 2 2 $57,000 $44,000 On average, 18% of the sales are collected in the month of sale, 47% are collected in the month following sale, 23% are collected in the second month following sale, and the remaining 12% is collected three months after the month of sale. ABC Company had budgeted cash collections from customers. of $61,852 in February and $54,390 in March, ABC's budgeted accounts receivable at March 31 was $60, 350. calculate ABC Company's budgeted sales in January.
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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