The greens company sales and unit prices are as follow. Monthly sales are budgetd in units as follows: 28,000 for October, 20,000 for november, and 25,600 for December. the prices are $10 for October, $12 for november and 12.5 december. The experience has shown that 50% percent of the sales of the greens company sales are for cash. the rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale. and 5% in the second month following sale. the remainder is expected to be uncollectible. Requirement: i) Prepare a schedule of sales for the quater and ii) Prepare expected cash collections for the month of December.
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 greens company sales and unit prices are as follow.
Monthly sales are budgetd in units as follows: 28,000 for October, 20,000 for november, and 25,600 for December.
the prices are $10 for October, $12 for november and 12.5 december.
The experience has shown that 50% percent of the sales of the greens company sales are for cash.
the rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale. and 5% in the second month following sale. the remainder is expected to be uncollectible.
Requirement:
i) Prepare a schedule of sales for the quater and
ii) Prepare expected cash collections for the month of December.
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