(a) Anusha Berhad's sales pattern for the first quarter 2021 and projected revenues are as follows: Month Jan Feb Mar Apr Мay Sales 120,000 160,000 170,000 210,000 200,000 (RM) Additional information: i. Historically, Anusha Berhad's sales were on cash basis. Anusha purchase raw material two month before the sales month and paid in cash equal to 60 percent of its sales. ii. iii. Fixed monthly rent of RM11,000. iv. A depreciation expense is RM400 per month. Dividend of RM3,000 will be received at the end of each quarter. v. vi. Wages and salaries are estimated RM15,000 per month. vii. Anusha decide to repay RM40,000 of their loan on April. viii. Interest on accumulated loan is at 9 percent annual interest and paid in the following month. Ending cash balance for the budget period is RM20,000 and it would like to maintain minimum desired ix. balance of RM20,000 per month. Prepare a monthly cash budget for the first quarter 2021 for Anusha Berhad.
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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