Preparing a financial budget——-schedule of cash receipts Victors expects total sales of $702,000 for January and $349,000 for February. Assume that Victors’s sales are collected as follows: 50% in the month of the sale 30% in the month after the sale 16% two months after the sale 4% never collected November sales totaled $388,000, and December sales were $407,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar.
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.
Preparing a financial budget——-schedule of cash receipts
Victors expects total sales of $702,000 for January and $349,000 for February. Assume that Victors’s sales are collected as follows:
50% in the month of the sale
30% in the month after the sale
16% two months after the sale
4% never collected
November sales totaled $388,000, and December sales were $407,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar.
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