Forty percent of Soft Company’s sales are for cash and 60% are on account. Fifty percent of the account sales are collected in the month of sale. 30% in the month following sale and 20% in the second month following sale. The following are budgeted sales data for the company. January – P60,000 February – P40,000 March – P50,000 Total cash receipts in March are expected to be?
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 8
Forty percent of Soft Company’s sales are for cash and 60% are on account. Fifty percent of the account sales are collected in the month of sale. 30% in the month following sale and 20% in the second month following sale. The following are budgeted sales data for the company.
January – P60,000
February – P40,000
March – P50,000
Total cash receipts in March are expected to be?
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