A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $8,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Answer is complete but not entirely correct. Quarter 2 Quarter 1 (000 omitted) Quarter 3 (000 Quarter 4 (000 (000 Year (000 omitted) omitted) omitted) omitted) Cash balance, beginning S $ Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) Total financing Cash balance, ending "Interest will total $1,000 for the year. S 6 73 79 55 20->> 13 2 90- (11) 19 S 00 8 $ 19 8 110 118 65 45 9 2 121 (3) ✔ 11 110 S 8 S 8 120 128✔ 55 30 30 2 117 11 00 (3) S 8 S 8 112 120 → 31 240 100 2 67- 53✔ 00 (28)✔ 25 $ 30 X 415 445 206 119 62 80 395 50 X 30→ (31) ✔ (1) ► 40 x
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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