Jake Company needs to calculate the amount of cash it expects to collect for the month of july using the following info: Month Credit SaIes May 200,000 budgeted June 230,000 budgeted JuIy 220,000 budgeted August 250,000 budgeted The company has historically collected its receivables as follows: Collections in month of sale 30% Collections one month after the sale 50% ColIections two months after the sale 20%
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.
Jake Company needs to calculate the amount of cash it expects to collect for the
month of july using the following info:
Month Credit SaIes
May 200,000 budgeted
June 230,000 budgeted
JuIy 220,000 budgeted
August 250,000 budgeted
The company has historically collected its receivables as follows:
Collections in month of sale 30%
Collections one month after the sale 50%
ColIections two months after the sale 20%
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