What are the budgeted cash receipts for March? Choosebelow: $299,400 $296,400 $312,000 $239,000
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.
Southwest Missouri Insurance sells insurance to students to protect them from crappy professors. Students pay monthly insurance fees, and if they have a terrible professor, they can drop out of the class and the insurance payment will pay them back for their class fees.
Southwest Missouri Insurance has the following actual January revenue and budgeted February-March revenues:
| January (Actual) | February (Budget) | March (Budget) | |
| Cash sales | $80,000 | $100,000 | $60,000 |
| Credit sales | $240,000 | $360,000 | $180,000 |
| Total sales | $320,000 | $460,000 | $240,000 |
Southwest Missouri Insurance estimates that 5% of all credit sales will be uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. The company has a gross profit margin of 30%.
What are the budgeted cash receipts for March?
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