COVID 19 Co has forecast sales to be $128,000 in February, $137,000 in March, $151,000 in April, and $148,000 in May. The average cost of goods sold is 70% of sales All sales are on made on credit and sales are collected 60% in the month of sale, and 40% the month following What are budgeted cash receipts in May? Select one O a $149,20o OF b.$133,400 O S137,400 d. $96,900
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.
| Feb | Mar | April | May | |
| Sales | $128,000 | $137,000 | $151,000 | $148,000 |
| Cash collected: | ||||
| In the month of sales (60%) | $76,800 | $82,200 | $90,600 | $88,800 |
| In the following month (40%) | $51,200 | $54,800 | $60,400 | |
| Total cash collection: | $76,800 | $133,400 | $145,400 | $149,200 |
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