Tracy is preparing her budget for next year and needs your assistance. Now that she has a better idea of what to expect now that she is in business full time, we want to begin having some of her ingredients in stock to avoid not being able to get the ingredients on time. She is ready to prepare her budget for the first four months of 2021. She believes she will sell the following number of cupcakes each month: Month January February March April # of cupcakes 6,950 7,950 7,050 7,450 All cupcakes are sold each month and she has no beginning or ending cupcake inventory. Tracy would like for you to create a cash collections budget if she sells each cupcake for $2.28 each. She anticipates that 80% of her sales will be cash sales and the remaining 20% will be on account. Of the 20% on account, she believes she will receive 70% the month of sales and 30% the second month. The beginning accounts receivable is $2,000. 1. Explain how to do the steps that all
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.
Tracy is preparing her budget for next year and needs your assistance. Now that she has a better idea of what to expect now that she is in business full time, we want to begin having some of her ingredients in stock to avoid not being able to get the ingredients on time.
She is ready to prepare her budget for the first four months of 2021. She believes she will sell the following number of cupcakes each month:
|
Month |
January |
February |
March |
April |
|
# of cupcakes |
6,950 |
7,950 |
7,050 |
7,450 |
All cupcakes are sold each month and she has no beginning or ending cupcake inventory.
Tracy would like for you to create a cash collections budget if she sells each cupcake for $2.28 each. She anticipates that 80% of her sales will be cash sales and the remaining 20% will be on account. Of the 20% on account, she believes she will receive 70% the month of sales and 30% the second month. The beginning
1. Explain how to do the steps that all
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