Your Company's sales are 25% in cash and the rest on credit. Fifty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 20% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data January February March April Total sales $70,000 S80,000 $50,000 $40,000 What are the total cash receipts in the April budget? O S38.375 O $36.375 O 551,375 O $46,375
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.
![Your Company's sales are 25% in cash and the rest on credit. Fifty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 20% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data:
January
February
March
April
Total sales
$70.000
S80,000
$50,000
$40,000
What are the total cash receipts in the April budget?
O $38,375
O $36,375
O $51,375
$46,375](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F08ff0994-ca56-4184-9474-d93e340daac2%2F922b180d-18e5-4174-a6ff-fc2d9b388e72%2F7wrp3u_processed.png&w=3840&q=75)
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