shown below are the budgeted sales for ABC Company for the next five months. All sales are made on account. November December January February March Budgeted Sales 2 2 $57,000 $44,000 On average, 18% of the sales are collected in the month of sale, 47% are collected in the month following sale, 23% are collected in the second month following sale, and the remaining 12% is collected three months after the month of sale. ABC Company had budgeted cash collections from customers. of $61,852 in February and $54,390 in March, ABC's budgeted accounts receivable at March 31 was $60, 350. calculate ABC Company's budgeted sales in January.
shown below are the budgeted sales for ABC Company for the next five months. All sales are made on account. November December January February March Budgeted Sales 2 2 $57,000 $44,000 On average, 18% of the sales are collected in the month of sale, 47% are collected in the month following sale, 23% are collected in the second month following sale, and the remaining 12% is collected three months after the month of sale. ABC Company had budgeted cash collections from customers. of $61,852 in February and $54,390 in March, ABC's budgeted accounts receivable at March 31 was $60, 350. calculate ABC Company's budgeted sales in January.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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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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Transcribed Image Text:shown below are the budgeted sales for ABC Company for
the next five months. All sales are made on account.
Budgeted sales
November
December
January
February
March
2
2
$57,000
$44,000
on average, 18% of the sales are collected in the month.
of sale, 47% are collected in the month following sale,
23% are collected in the second month following sale,
and the remaining 12% is collected three months after
the month of sale.
ABC Company had budgeted cash collections from customers
of $61,852 in February and $54,390 in March. ABC's
budgeted accounts receivable at March 31 was $60, 350.
calculate ABC Company's budgeted sales in January.
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