Flint Development, Inc. has budgeted sales revenues as follows: Budgeted Sales Revenues $56,000 January February March April May June 65,000 98,000 84,000 68,000 34,000 Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June. (Do not leave any answer field blank. Enter O for amounts)
Flint Development, Inc. has budgeted sales revenues as follows: Budgeted Sales Revenues $56,000 January February March April May June 65,000 98,000 84,000 68,000 34,000 Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June. (Do not leave any answer field blank. Enter O for amounts)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Concept explainers
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
Transcribed Image Text:Flint Development, Inc. has budgeted sales revenues as follows:
January
February
March
April
May
June
February Sales
Credit Sales
March Sales
Credit Sales
April Sales
Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in
the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible.
Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June. (Do not leave any answer field
blank. Enter O for amounts)
Credit Sales
Cash Sales
May Sales
Budgeted Sales Revenues
Credit Sales
Cash Sales
June Sales
Credit Sales
Cash Sales
$56,000
Total Cash Receipts
65,000
19
98,000
84,000
68,000
34,000
April
FLINTDEVELOPMENT, INC.
Expected Cash Receipts from Sales
For the Quarter Ended June 30
2600
23520
31200
16800
44200
14
May
3920
15600
100
24000
10000
49600
th
June
7:10
2600
12000
10200
4250
29050
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