The following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000 Feb $160,000 Mar $180,000 Apr $45,000 Balance Sheet Data December 31,2010 Cash $80,000 Account receivable: November sales 45000 December sales 50000 Inventory 54000 Account payable(merchandise) 27000 Other data are as follows: Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale Cost of goods sold is 50% of sales Other variables costs are 30% of sales paid in the month incurred Inventories are to be 80% of next month’s budgeted sales requirements Fixed expenses are $15000 per month; all require cash Credit time period for purchases are 30 days On basis of above information answer following questions Find how much Cash Collect in the month of Feb 2011?
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 following data apply to the HASF Hardware Store and its 2011 budget
|
|
|
|
Jan |
$200,000 |
|
Feb |
$160,000 |
|
Mar |
$180,000 |
|
Apr |
$45,000 |
|
|
|
|
December 31,2010 |
|
|
Cash |
$80,000 |
|
|
|
|
November sales |
45000 |
|
December sales |
50000 |
|
Inventory |
54000 |
|
Account payable(merchandise) |
27000 |
Other data are as follows:
- Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale
- Cost of goods sold is 50% of sales
- Other variables costs are 30% of sales paid in the month incurred
- Inventories are to be 80% of next month’s budgeted sales requirements
- Fixed expenses are $15000 per month; all require cash
- Credit time period for purchases are 30 days
On basis of above information answer following questions
Find how much Cash Collect in the month of Feb 2011?
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