A cash budget, by quarters, is given below for a retail company. (000 omitted) company requires a minimum cash balance of at least Br 5,000to start each quarter.
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.
A
|
|
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Year
|
|
Cash balance, beginning |
6
|
? |
? |
? |
? |
|
Add collections from customers |
? |
? |
96 |
? |
323 |
|
Total cash available |
71 |
? |
? |
? |
? |
|
Less disbursement:
|
|
|
|
|
|
|
Purchase inventory |
35 |
45 |
? |
35 |
? |
|
Operating expense |
? |
30 |
30 |
? |
113 |
|
Equipment purchase |
8 |
8 |
10 |
? |
36 |
|
Dividends |
2 |
2 |
2 |
2 |
? |
|
Total disbursement |
? |
85 |
? |
? |
? |
|
Excess (deficiency) of each cash |
(2) |
? |
11 |
? |
? |
|
Financing: |
|
|
|
|
|
|
Borrowing |
? |
15 |
- |
- |
? |
|
Repayments (including interest) |
- |
- |
? |
(17) |
? |
|
Total financing |
? |
? |
? |
? |
? |
|
Cash balance, ending |
? |
? |
? |
? |
? |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
