THE BUDGET PREPARATION: Given the following assumptions, prepare the sales budget and schedule of expected cash collection of Uncle Sam's Chicken Station, December 31, 2015. Assumptions: 1. Sales of 150,000 is recorded for 1st quarter. Expected sales in units increase by 5% in remaining quarters. 2. Unit Selling Price is 45. 3. Balance of 120,000 is collected in the 1st quarter of the current year. 4. 55% of the current quarter's sales is collected in the quarter when the sales took place. The remaining 45% is collected in the next quarter.
THE BUDGET PREPARATION: Given the following assumptions, prepare the sales budget and schedule of expected cash collection of Uncle Sam's Chicken Station, December 31, 2015. Assumptions: 1. Sales of 150,000 is recorded for 1st quarter. Expected sales in units increase by 5% in remaining quarters. 2. Unit Selling Price is 45. 3. Balance of 120,000 is collected in the 1st quarter of the current year. 4. 55% of the current quarter's sales is collected in the quarter when the sales took place. The remaining 45% is collected in the next quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:THE BUDGET PREPARATION: Given the following assumptions, prepare the sales
budget and schedule of expected cash collection of Uncle Sam's Chicken
Station, December 31, 2015.
Assumptions:
1. Sales of 150,000 is recorded for 1st quarter. Expected sales in units increase
by 5% in remaining quarters.
2. Unit Selling Price is 45.
3. Balance of 120,000 is collected in the 1st quarter of the current year.
4. 55% of the current quarter's sales is collected in the quarter when the
sales took place. The remaining 45% is collected in the next quarter.
Transcribed Image Text:Expected Sales in Units
Unit Selling Price
Total Sales
Accounts Receivable from
Previous Year
1ST Quarter Sales
2nd Quarter Sales
3rd
Quarter Sales
4th Quarter Sales
Total Cash Collections
Uncle Sam's Chicken Station
Sales Budget
December 31, 2015
QUARTER
1
2
1
Uncle Sam's Chicken Station
Schedule of Expected Cash Collection
December 31, 2015
Quarter
3
2
3
4
4
Total
Total
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