Michael's Incorporated expect the following sales: Cash Credit $ 50,000 $ 150,000 $ 55,000 $ 170,000 $ 130,000 $ 24,000 $ 109,000 July August September October November $ 29,000 $ 34,000 $ 200,000 The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which Includes $55,000 of June's sales and $16,000 of May's sales. Compute the projected Accounts Receivable balance on November 30:
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.
![July
August
Michael's Incorporated expect the following sales:
Credit
$ 150,000
$ 170,000
Cash
$ 50,000
$ 55,000
September
$ 29,000
$ 130,000
October
$ 24,000
$ 109,000
November
$ 34,000
$ 200,000
The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the
month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which
includes $55,000of June's sales and $16,000 of May's sales.
Compute the projected Accounts Receivable balance on November 30:
Multiple Choice
$115,800
$110,000
О
$131,800
$247,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce4c7c26-7609-433b-945b-6c0f77013d2e%2F74d63530-d9d1-4040-95c4-056254c4573c%2Fi89l2qv_processed.jpeg&w=3840&q=75)
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