sole trader is preparing a cash budget for January. His credit sales are October £80,000 Actual November £60,000 December £100,000 Estimated January £50,000. His recent debt collection experience is % Current month’s sales 20 Prior month’s sales 60 Sales two months prior 10 Cash discounts taken 5 Bad debts 5 How much may he expect to collect in January? A £70,000 B £73,000 C £76,000 D £79,000
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.
A sole trader is preparing a
October £80,000
Actual November £60,000
December £100,000
Estimated January £50,000.
His recent debt collection experience is
%
Current month’s sales 20
Prior month’s sales 60
Sales two months prior 10
Cash discounts taken 5
How much may he expect to collect in January?
A £70,000
B £73,000
C £76,000
D £79,000
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