Budgeted revenue $624,000 $702,000 $910,000 $2,236,000 The company makes all sales on credit. Nancy recently reviewed the company's collection history and found that 72% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 2% of sales are uncollectible. The company expects to have a net accounts receivable balance of $98,200 on January 1, and this amount represents the remaining receivables from December's sales. Prepare Waterway & Daniel's cash receipts budget for the first quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) January December credit sales $ $ January sales February sales March sales Cash Receipts Budget February March $ $ $ $ Total C
Budgeted revenue $624,000 $702,000 $910,000 $2,236,000 The company makes all sales on credit. Nancy recently reviewed the company's collection history and found that 72% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 2% of sales are uncollectible. The company expects to have a net accounts receivable balance of $98,200 on January 1, and this amount represents the remaining receivables from December's sales. Prepare Waterway & Daniel's cash receipts budget for the first quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) January December credit sales $ $ January sales February sales March sales Cash Receipts Budget February March $ $ $ $ Total C
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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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.
Question
Transcribed Image Text:Budgeted revenue
$624,000 $702,000 $910,000
$2,236,000
The company makes all sales on credit. Nancy recently reviewed the company's collection history and found that 72% of the sales are
collected in the month of the sale, 26% of sales are collected in the month following the sale, and 2% of sales are uncollectible. The
company expects to have a net accounts receivable balance of $98,200 on January 1, and this amount represents the remaining
receivables from December's sales.
Prepare Waterway & Daniel's cash receipts budget for the first quarter. (Enter answers in necessary fields only. Leave other fields blank. Do
not enter 0.)
January
December credit sales
January sales
February sales
March sales
Totals
$
EA
GA
+A
$
Cash Receipts Budget
February
March
$
$
+A
EA
Total C
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