MGT223H5 Lecture Notes - Accounts Receivable
Document Summary
Budgeting: detailed plan for acquiring and using financial &other resources for future periods. Planning: developing/preparing objectives and strategies to reach goal. Self-imposed budget: prepared with full co-operating of managers from all levels (low to high) All managers are viewed as members/respected by top management. Budget estimates are more accurate from bottom managers than top. Higher motivation when able to participating in setting the budget. Will not have the excuse that the budget is unrealistic. Zero based budgeting: requires manager to justify all expenses, not just changes from the prior years. Prepare the quarter end of june 30, sales budge. Expected cash collection question: . all sales on account. The march 31 accounts receivable balance of ,000 will be collected in full in april. 70% collected in the month of sale, 25% collected in the month following sale, Parlee company"s sales are 30% in cash and 70% on credit.
