Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) July 95,000 August 97,000 September 100,000 October 105,000 November 103,000 December 107,000 The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 90% in the month following sale. The company desires each month’s ending finished goods inventory to equal 20% of the following month’s sales. Budgeted Accounts Receivable on June 30th is $418,500. What is the amount of Accounts Receivable as of August 31st? a. $436,500 b. $450,000 c. $418,500 d. $427,500
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.
Skullduggery, Inc. reports the following information from its sales budget:
|
|
Budgeted sales (units) |
|
July |
95,000 |
|
August |
97,000 |
|
September |
100,000 |
|
October |
105,000 |
|
November |
103,000 |
|
December |
107,000 |
The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 90% in the month following sale. The company desires each month’s ending finished goods inventory to equal 20% of the following month’s sales. Budgeted
| a. |
$436,500 |
|
| b. |
$450,000 |
|
| c. |
$418,500 |
|
| d. |
$427,500 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
