Distribution Corporation collects 35% of a month's sales in the month of sale, 45% in the month following sale, and 20% in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $120,000 May budgeted sales $150,000 June budgeted sales $230,000 July budgeted sales $170,000 The amount of cash that will be collected in July is budgeted to be Question 26 options: $133,500 $190,000 $193,000 $59,500
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.
| April budgeted sales | $120,000 |
| May budgeted sales | $150,000 |
| June budgeted sales | $230,000 |
| July budgeted sales | $170,000 |
The amount of cash that will be collected in July is budgeted to be
Question 26 options:
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$133,500
|
|
|
$190,000
|
|
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$193,000
|
|
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$59,500
|
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