Upside-Down Cakes prepared the following sales budget: Month Cash Sales Credit Sales March $30,000 $10,000 April $36,000 $26,000 May $52,000 $60,000 June $44,000 $58,000 Credit collections are 15% two months following the sale, 50% in the month following the sale, and 30% in the month of sale. The remaining 5% is expected to be uncollectible. What is the total cash received in the month of May? IMPORTANT: Provide your answer in the following format: ##### (Do NOT use the dollar sign or commas in your final answer) Answer:
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.
Upside-Down Cakes prepared the following sales budget:
|
Month |
Cash Sales |
Credit Sales |
|
March |
$30,000 |
$10,000 |
|
April |
$36,000 |
$26,000 |
|
May |
$52,000 |
$60,000 |
|
June |
$44,000 |
$58,000 |
Credit collections are 15% two months following the sale, 50% in the month following the sale, and 30% in the month of sale. The remaining 5% is expected to be uncollectible.
What is the total cash received in the month of May?
IMPORTANT: Provide your answer in the following format: ##### (Do NOT use the dollar sign or commas in your final answer)
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