HOM Enterprises estimated the following sales for the first six months of 2022: Month Estimated Sales Quantity January 50,000 February 45,000 March 47,000 April 42,000 Мay 54,000 June 89,000 The following information was provided: - The selling price per unit is $10. -All sales are on credit. In the month of sale, 65% is collected and the remaining 35% is collected the following month. - The company wants to maintain ending inventory at 15% of the following month's sales. - The ending inventory as of December 31 was 14,000 units. - The accounts receivable balance as of December 31 was $87,000
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.
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