Estate Ltd begins trading on January 1st, 2017. The following sales figures are budgeted for January to March in 2017 January February March $ 13,000 $ 17,000 $ 10,000 5 % of sales will be for cash. The remainder will be credit sales. A discount of 5 % will be offered on all cash sales The payment pattern for credit sales is expected to be as follows. Invoices paid the month after sale 75 % Invoices paid in the second month after sale 23 % Bad debts 02 % Invoices are issued on the last day of each month. The amount budgeted to be received in March 2017 is
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.
Estate Ltd begins trading on January 1st, 2017. The following sales figures are budgeted for January to March in 2017 January February March $ 13,000 $ 17,000 $ 10,000 5 % of sales will be for cash. The remainder will be credit sales. A discount of 5 % will be offered on all cash sales The payment pattern for credit sales is expected to be as follows. Invoices paid the month after sale 75 % Invoices paid in the second month after sale 23 %
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