ssume a merchandising company provides the following information from its master budget for the month of May: Sales $ 121,000 Cost of goods sold $ 97,000 Selling and administrative expenses $ 31,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 24,500
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.
Assume a merchandising company provides the following information from its
| Sales | $ 121,000 |
|---|---|
| Cost of goods sold | $ 97,000 |
| Selling and administrative expenses | $ 31,000 |
| $ 17,000 | |
| Accounts receivable, May 31st | $ 24,500 |
If all of the company’s sales are on account, what is the amount of cash collections from customers included in the
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