Y3 Five Friends Relocation Company prepared the following sales budget: Month Cash Sales Credit Sales March $21,000 $12,000 April $30,000 $16,000 May $37,000 $35,000 June $58,000 $53,000 Credit collections are 40% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. The remaining 10% is expected to be uncollectible. What are the total cash collections in May at Five Friends Relocation Company? A. $51,700 B. $58,600 C. $100,000 D. 21,600
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
