Wyatt Ltd produced the following budget information concerning sales revenue: Sales revenue £ September 260,000 October 320,000 November 280,000 The business expects to receive 25% of sales revenue generated within the month of sale. 70% is expected to be received one month after the relevant sale and the remainder two months after. Prepare the following trade receivables budget for November. (Enter your answers as integers. Any deductions to be shown in brackets.)
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.
|
|
Sales revenue
|
|
|
£
|
|
September
|
260,000
|
|
October
|
320,000
|
|
November
|
280,000
|
|
|
£
|
|
Opening balance
|
253,000
|
|
Sales for month
|
|
|
|
533,000
|
|
Cash received
|
|
|
Closing balance
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
