Use this information about Nuthatch Corporation to answer the question that follows. Nuthatch 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 $245,000, $318,000, and $423,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in September from accounts receivable are estimated to be a. $294,000 b. $171,500 c. $245,000 d. $137,200
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.
![Use this information about Nuthatch Corporation to answer the question that follows.
Nuthatch 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 $245,000, $318,000, and $423,000,
respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are
expected to be collected in the month of the sale and 20% in the month following the sale.
The cash collections expected in September from accounts receivable are estimated to be
a. $294,000
b. $171,500
c. $245,000
d. $137,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F631dbc6d-5610-453b-a9a4-1f2fc26381fa%2F48399178-913e-4389-8bf3-0c256442c0dd%2Fry2d57c_processed.png&w=3840&q=75)
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