The budget director of Heather’s Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required Complete the schedule of cash receipts by filling in the missing amounts. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. July August September Sales Budget Cash sales $67,000 $72,000 $74,000 Sales on account 100,000 106,000 122,600 Total budgeted sales $167,000 $178,000 $196,600 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $437,000 $172,000 $180,000 Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Accounts receivable
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.
The budget director of Heather’s Florist has prepared the following sales budget. The company had $370,000 in
Required
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Complete the schedule of cash receipts by filling in the missing amounts.
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Determine the amount of accounts receivable the company will report on its third quarter pro forma
balance sheet .July August September Sales Budget Cash sales $67,000 $72,000 $74,000 Sales on account 100,000 106,000 122,600 Total budgeted sales $167,000 $178,000 $196,600 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $437,000 $172,000 $180,000 -
Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
Accounts receivable
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