3. Nirmala Textile is planning to purchase raw materials on lst January 2021 and the payment will be on credit term net 60. The goods will be sold on 15 February 2021. Meanwhile, total initial outlays and account receivables of the company are RM 650,000 and RM 35,000 respectively. The annual sales of the company are RM 450,000 with 30% of it is on credit. Assume there are 360 days in a year. Calculate: Cash Turnover for Nirmala Textile
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.
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