Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sales, 50% in the next month and 20% in the second following month. Witchita industries' had $12000 from November sales and $42000 from December sales. Assume that total sales for January and Feburary are budgeted to be $50000 and $100000, respectively. What are the expected cash recipts for February from current and past sales? a)80,500 b)67060 c)34500 d)61500 e)59500
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.
Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sales, 50% in the next month and 20% in the second following month. Witchita industries' had $12000 from November sales and $42000 from December sales. Assume that total sales for January and Feburary are budgeted to be $50000 and $100000, respectively. What are the expected cash recipts for February from current and past sales?
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