The budgeted sales for an organisation are as follows: January February March April Sales 600 800 400 500 These are all credit sales and debtors tend to pay in the following pattern: 10% in month of sale 40% in month after sale 45% two months after sale Bad debts 5% of sales How much cash would the firm expect to collect in April? A 540 B 550 C 560 D 570
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 budgeted sales for an organisation are as follows:
January February March April
Sales 600 800 400 500
These are all credit sales and debtors tend to pay in the following pattern:
10% in month of sale
40% in month after sale
45% two months after sale
How much cash would the firm expect to collect in April?
A 540
B 550
C 560
D 570
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
