Sales

Wikipedia, the free, on-line encyclopedia, says, "A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity." InvestorWords.com defines sales growth as, "The increase in sales over a specific period of time, often but not necessarily a year."

You sell shoes. A customer tries on a pair. He likes it. You wrap them up for him, he pays you, and he's on his way. You made a sale.

Sales is an activity. Cash flows from it. Growth in sales creates growth in cash. Two other words, "revenue and income, are related concepts, but I don't think they're the same.

Jae Shim and Joel Siegel, in Financial Management (New York: Barron's Business Library, 2000), say:

"The sales budget is the starting point in preparing the master budget since estimated sales volume influences nearly all other items in the master budget. The sales budget ordinarily indicates that quantity in units of each produc the company expects to sell. That number is multiplied by the expected unit selling price to construct the sales budget." (p. 67)

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