Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 What is the budgeted cash to be collected on account for the month of August? a.$150,000 b.$130,640 c.$45,000 d.$132,000 e.$154,600
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.
| Percent paid in the month of sale | 35% |
| Percent paid in the month after the sale | 54% |
| Percent paid in the second month after the sale | 6% |
Alpha provided the following information on sales:
| May | $150,000 |
| June | $125,000 |
| July | $136,000 |
| August (expected) | $142,000 |
What is the budgeted cash to be collected on account for the month of August?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
