The Model Company is to begin operations in April. It has budgeted April sales of $36.000, May sales of $40.000. June soles of $45.000. July sales of $48.000, and August sales of $44,000. Note that 10% of each monthi's sales is expected to represent casi sales; 75% of the balance is expected to be collected in the month following the sale, 17% the second month, 6% the third month, and the balance is expected to be uncollectible. What is the amount of cash to be collected in the month of August? Multiple Choice Ο Ο Ο Ο 345.098 $46,270. $43,626 $50,620
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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