Devon Campbell’s is a men’s clothing store in Mesa, Arizona. Devon Campbell’s has its own house charge accounts and has found from past experience that 20 percent of its sales are for cash. The remaining 80 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale.65 percent of credit sales are paid in the first month following the sale.18 percent of credit sales are paid in the second month following the sale.2 percent of credit sales are never collected. Devon Campbell’s has developed the following sales forecast: May $66,000; June 85,000; July 55,000; August 75,000; September 80,000. 1.How much is the forecasted cash inflow for Campbell for August? 2.How much is the forecasted cash inflow for Campbell for September?
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.
G. Devon Campbell’s is a men’s clothing store in Mesa, Arizona. Devon Campbell’s has its own house charge accounts and has found from past experience that 20 percent of its sales are for cash. The remaining 80 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale.65 percent of credit sales are paid in the first month following the sale.18 percent of credit sales are paid in the second month following the sale.2 percent of credit sales are never collected. Devon Campbell’s has developed the following sales
1.How much is the forecasted
2.How much is the forecasted cash inflow for Campbell for September?
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