Question 1 The following sales budget has been prepared for greyhound Express: CAsh Sales. Credit Sales January 10000 20000 Feb 20,000 30,000 mar 30,000. 40,000 April 40,000 50,000 collections are 50% in the month of sales, 40% in the month following sales and 5% two months following the sale. The remaining 5% is expected to be collected. the balance for the accounts reeivable to be reflected in the balance sheet at the end of April is a. $44,000 b $24,500 c $70,000 d $90,000
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.
Question 1
The following sales budget has been prepared for greyhound Express:
CAsh Sales. Credit Sales
January 10000 20000
Feb 20,000 30,000
mar 30,000. 40,000
April 40,000 50,000
collections are 50% in the month of sales, 40% in the month following sales and 5% two months following the sale. The remaining 5% is expected to be collected. the balance for the accounts reeivable to be reflected in the balance sheet at the end of April is
a. $44,000
b $24,500
c $70,000
d $90,000
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