In master budget preparation Cash collection schedule is prepared based on the purchased budget?

No, the cash collection schedule is not prepared based on the purchased budget. The cash collection schedule is prepared based on the sales budget, which outlines the expected sales revenue for the period. The cash collection schedule then details when and how much cash is expected to be collected from customers based on the terms of sale (e.g. cash sales, credit sales with specific payment terms). This schedule helps the company to forecast its cash inflows and plan for any potential cash flow shortages or surpluses.

Sales budget