The OK Company, Inc. opened an agency in Makati in 2001. The following is a summary of the transactions of the agency: Sales orders sent to home office 66,000 Sales orders filed by home office in 2018 55,800 Freight in shipment to agency 1,320 Collections, net of 2% discount 47,628 Selling expenses paid from the agency 3,384 working fund Administrative expenses charged to agency 5% of goss sales Samples shipped to agency: Cost 3,600 Inventory, Dec. 31, 2018 1,320 The company maintains its gross margin on agency gross sales at 30% excluding the freight cost on shipments to agency. Agency's net income is?
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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