Your Company's sales are 20% in cash and the rest on credit. Forty-five percent of the credit sales are collected in the month of sale, 15% in the month following sale, and 35% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data: January February March April Total sales $70,000 $80,000 $50,000 $40,000 What are the total cash receipts in the March budget? Group of answer choices $49,200 $47,200 $57,200 $62,200
Your Company's sales are 20% in cash and the rest on credit. Forty-five percent of the credit sales are collected in the month of sale, 15% in the month following sale, and 35% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data: January February March April Total sales $70,000 $80,000 $50,000 $40,000 What are the total cash receipts in the March budget? Group of answer choices $49,200 $47,200 $57,200 $62,200
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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Concept explainers
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.
Question
Your Company's sales are 20% in cash and the rest on credit. Forty-five percent of the credit sales are collected in the month of sale, 15% in the month following sale, and 35% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data:
What are the total cash receipts in the March budget?
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January
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February
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March
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April
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Total sales
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$70,000
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$80,000
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$50,000
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$40,000
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What are the total cash receipts in the March budget?
Group of answer choices
$49,200
$47,200
$57,200
$62,200
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