Use this information about Dove Corporation to answer the question that follows. Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first 3 months of business-September, October, and November-are $232,000, $310,000, and $401,000, respectively. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections expected in October are
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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Use this information about Dove Corporation to answer the question that follows.
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first 3 months of business-September, October, and November-are $232,000, $310,000, and $401,000, respectively. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale.
The cash collections expected in October are
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