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
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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