A company calculates the following cash inflows and outflows for its January Cash Budget: Beginning Cash Balance Cash Collections Cash Available Disbursements: Raw Materials Direct Labor Manufacturing Overhead Selling, General and Admin expenses Total Disbursements $20,000 $590,000 $610,000 $300,000 $150,000 $50,000 $113,000 $613,000 At the beginning of January, the company has no outstanding debt. If this company wants to always have at least $17,000 of cash on hand at the beginning of each month, how much do they need to borrow during for the month of January?
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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