The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales April $38,000 $256,000 May $54,000 $250,000 June $36,000 $192,000 July $33,000 $190,000 August $35,000 $287,000
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.
The budgeted sales of Kelley, SA for the given months are as follows:
| Cash Sales | Credit Sales | |
| April | $38,000 | $256,000 |
| May | $54,000 | $250,000 |
| June | $36,000 | $192,000 |
| July | $33,000 | $190,000 |
| August | $35,000 | $287,000 |
To prepare a
The
Collections on Credit sales:
- 65% in month of sale
- 30% in month following sale
- 5% in second month following sale
Part 1:
What should the April cash collected be? $BLANK
Part 2:
For August 1, what is budgeted Accounts Receivable? (76,100, 100,300, 109,950, 144950, OR 79,700)
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