Tucker Inc. had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $70,000 $340,000 February 50,000 190,000 March 40,000 135,000 April 35,000 120,000 May 45,000 160,000 June 40,000 140,000 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 credit sales: 60% in month of sale 30% in month following sale 10% in second month following sale There is no beginning accounts receivable balance. The total cash collected by Tucker Inc. during January would be: The total cash collected by Tucker Inc. during February would be: The total cash collected by Tucker Inc. during March would be: The total cash collected by Tucker Inc. during April would be: The total cash collected by Tucker Inc. during May would be: The total cash collected by Tucker Inc. during June would be:
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.
Tucker Inc. had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $70,000 $340,000
February 50,000 190,000
March 40,000 135,000
April 35,000 120,000
May 45,000 160,000
June 40,000 140,000
The company is in the process of preparing a
Collections on credit sales: 60% in month of sale
30% in month following sale
10% in second month following sale
There is no beginning
The total cash collected by Tucker Inc. during January would be:
The total cash collected by Tucker Inc. during February would be:
The total cash collected by Tucker Inc. during March would be:
The total cash collected by Tucker Inc. during April would be:
The total cash collected by Tucker Inc. during May would be:
The total cash collected by Tucker Inc. during June would be:
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