Belvedere Bricks manufactures bricks for the construction industry, which are sold online to customers on credit (30% of sales) and to customers through their retail store for cash (70% of sales). Belvedere Bricks is preparing a sales budget for May. April sales were 1,400 tubs. May sales are estimated to be 1,700 pallets of bricks. The average selling price per pallet is $250. Credit customers pay 90% in the month after sale. The remaining credit sales are bad. What is the estimated total cash collected in the sales budget for May?
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.
Belvedere Bricks manufactures bricks for the construction industry, which are sold online to customers on credit (30% of sales) and to customers through their retail store for cash (70% of sales). Belvedere Bricks is preparing a sales budget for May. April sales were 1,400 tubs. May sales are estimated to be 1,700 pallets of bricks. The average selling price per pallet is $250. Credit customers pay 90% in the month after sale. The remaining credit sales are bad. What is the estimated total cash collected in the sales budget for May?
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