The LaPann Corporation has obtained the following sales forecast data: Cash sales Credit sales July August September $ 80,000 $70,000 $50,000 $ 240,000 $220,000 $180,000 October $60,000 $ 200,000 The regular pattern of collection of credit sales is 30% in the month of sale, 70% in the month following the month of sale. There are no bad debts. The total budgeted cash collections in August would be: Multiple Choice $366,000 $198.000 $296,000 $304,000 $268,000
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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