Sophia prepared the following sales budget: Cash sales : February P80,000 March 100,000, April 90,000, May P120,000, June 110,000. Credit sales february P340,000, March 400,000, April 370,000, MayvP460,000, June 380,000 Collections are 40 percent in the month of sale, 45 percent in the month following the sale and 10 percent two months following the sale. The remaining 5 percent is expected to be uncollectible. The company’s budgeted collections from April to June amounts to
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
