The company’s sales manager prepared the following sales forecast for the first half of the year. January $235,000 February 198,000 March 211,000 April 285,000 May 300,000 June 305,000 Historically, the cash collection of sales has been as follows: • 47% of sales collected in the month of sale • 50% of sales collected in the month following the sale • 3% of sales collected in the second month following the sale • All sales are on account Prepare the schedule of the cash collection of Accounts Receivable for the second quarter
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.
3. The company’s sales manager prepared the following sales
January $235,000
February 198,000
March 211,000
April 285,000
May 300,000
June 305,000
Historically, the cash collection of sales has been as follows:
• 47% of sales collected in the month of sale
• 50% of sales collected in the month following the sale
• 3% of sales collected in the second month following the sale
• All sales are on account
Prepare the schedule of the cash collection of
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