The LaGrange Corporation had the following budgeted sales for the first half of the current year Cash Credit Sales Sales $ 90,000 $190,000 $ 95,000 $210,000 $ 47,000 $170,000 $ 42,000 $127,000 $ 52,000 $240,000 $120,000 $210,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled Collections on sales: 50% in month of sale 4 25% in month following sale 25% in second month following sale The accounts receivable balance on January 1 of the current year was $73,000, of which $46,000 represents uncollected December sales and $27,000 represents uncollected November sales The total cash collected during January by LaGrange Corporation would be: Multiple Choice $341,000 $92.000
The LaGrange Corporation had the following budgeted sales for the first half of the current year Cash Credit Sales Sales $ 90,000 $190,000 $ 95,000 $210,000 $ 47,000 $170,000 $ 42,000 $127,000 $ 52,000 $240,000 $120,000 $210,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled Collections on sales: 50% in month of sale 4 25% in month following sale 25% in second month following sale The accounts receivable balance on January 1 of the current year was $73,000, of which $46,000 represents uncollected December sales and $27,000 represents uncollected November sales The total cash collected during January by LaGrange Corporation would be: Multiple Choice $341,000 $92.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:M
The LaGrange Corporation had the following budgeted sales for the first half of the current year
Cash
Credit
Sales Sales
$ 90,000 $190,000
$ 95,000 $210,000
$ 47,000 $170,000
$ 42,000 $127,000
$ 52,000 $240,000
$120,000 $210,000
January
February
March
April
May
June
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled
Collections on sales
50% in month of sale
25% in month following sale
25% in second month following sale
The accounts receivable balance on January 1 of the current year was $73,000, of which $46.000 represents uncollected December sales and $27000 represents uncollected November sales
The total cash collected during January by LaGrange Corporation would be
Multiple Choice
$341,000
$92.000
$273.000
Transcribed Image Text:The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Credit
Cash
Sales
Sales
$ 90,000 $190,000
$ 95,000 $210,000
$ 47,000 $170,000
$ 42,000 $127,000
$ 52,000 $240,000
$120,000 $210,000
January
February
March
April
May
June
The company is in the process of preparing a cash budget and must determine the expected cash collections by month To this end, the following information has been assembled
Collections on sales:
50% in month of sale
4
25% in month following sale
25% in second month following sale
The accounts receivable balance on January 1 of the current year was $73,000, of which $46,000 represents uncollected December sales and $27,000 represents uncollected November sales
The total cash collected during January by LaGrange Corporation would be:
Multiple Choice
O
$341,000
$92,000
$273,000
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