Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) September 100,000 October 105,000 November 103,000 December 107,000 The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: a. $522,000 b. $516,500 c. $520,000 d. $535,000
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.
Skullduggery, Inc. reports the following information from its sales budget:
|
|
Budgeted sales (units) |
|
September |
100,000 |
|
October |
105,000 |
|
November |
103,000 |
|
December |
107,000 |
The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is:
| a. |
$522,000 |
|
| b. |
$516,500 |
|
| c. |
$520,000 |
|
| d. |
$535,000 |
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