OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $58,000 November 65,000 December 72,000 The Accounts Receivable balance on September 30 was $35,000. Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers. OfficeMart Inc.Schedule of Cash Collections from SalesFor the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account: Collected in October fill in the blank 4 October sales on account: Collected in October fill in the blank 5 Collected in November fill in the blank 6 November sales on account: Collected in November fill in the blank 7 Collected in December fill in the blank 8 December sales on account: Collected in December fill in the blank 9 Total cash collected $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
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.
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
| October | $58,000 |
| November | 65,000 |
| December | 72,000 |
The
Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers.
OfficeMart Inc.Schedule of Cash Collections from SalesFor the Three Months Ending December 31
| October | November | December | |
| Receipts from cash sales: | |||
| Cash sales | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| September sales on account: | |||
| Collected in October | fill in the blank 4 | ||
| October sales on account: | |||
| Collected in October | fill in the blank 5 | ||
| Collected in November | fill in the blank 6 | ||
| November sales on account: | |||
| Collected in November | fill in the blank 7 | ||
| Collected in December | fill in the blank 8 | ||
| December sales on account: | |||
| Collected in December | fill in the blank 9 | ||
| Total cash collected | $fill in the blank 10 | $fill in the blank 11 | $fill in the blank 12 |
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