XYZ Company produces and sells one product. The budgeted selling price per unit is $60. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $141,000 O c. $129,250 O d. $117,500 O e. $192,600
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.
![XYZ Company produces and sells one product. The budgeted
selling price per unit is $60. Budgeted unit sales for July, August,
September, October and November are 1,400 units, 2,100 units,
3,400 units, 2,700 units and 4,200 units, respectively. All sales are on
credit. Regarding credit sales, 30% are collected in the month of the
sale, 50% in the month following sales, and the remaining 20% in
the second month following sale. The expected total cash
collections in September is closest to:
Select one:
O a. None of the given answers
O b. $141,000
O c. $129,250
O d. $117,500
O e. $192,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa442a41b-015b-4040-ad3f-a29d3c278c52%2Fe70c2d62-a57e-495a-a0cd-ec8499617019%2F4gqj25_processed.png&w=3840&q=75)
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