What is usually the major source of receipts in the receipts section of the cash budget quizlet?

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:

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What is usually the major source of receipts section of the cash budget?
What are receipts in cash budget?
Which of the following are included in the cash receipts section of a cash budget?
Which sources are used to prepare a cash budget?

The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit.
Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.
The ending finished goods inventory equals 30% of the following month's sales.
The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound.
Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.
The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours.
Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.
The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000.

The estimated finished goods inventory balance at the end of February is closest to:

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What is usually the major source of receipts section of the cash budget?

The cash budget is comprised of two main areas, which are Sources of Cash and Uses of Cash. The Sources of Cash section contains the beginning cash balance, as well as cash receipts from cash sales, accounts receivable collections, and the sale of assets.

What are receipts in cash budget?

The cash receipts section of a cash budget summarizes all cash expected to flow into the business during the budget period. Now, because many companies generally extend credit to their customers, a lot of their sales are originally recorded as accounts receivable.

Which of the following are included in the cash receipts section of a cash budget?

The cash receipts section, which is cash collections from customers and other cash receipts, such as royalty income and investment income. The cash disbursements section, which comprises all cash payments made by purpose.

Which sources are used to prepare a cash budget?

How a Cash Budget Works. Companies use sales and production forecasts to create a cash budget, along with assumptions about necessary spending and accounts receivable collections. A cash budget is necessary to assess whether a company will have enough cash to continue operations.