The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April. a. At $37 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible. Marchsales Answer Aprilcash sales Answer Aprilcredit sales Answer Cash collected in April Answer b. Merchandise purchases were $54,000 and $87,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month. Marchpurchases Answer Aprilpurchases Answer Cash paid in April Answer
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 various elements relate to Whitfield, Inc.'s
a. At $37 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible.
| Marchsales | Answer
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| Aprilcash sales | Answer
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| Aprilcredit sales | Answer
|
| Cash collected in April | Answer
|
b. Merchandise purchases were $54,000 and $87,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.
| Marchpurchases | Answer
|
| Aprilpurchases | Answer
|
| Cash paid in April | Answer
|
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