A company has a cash balance on June 1 of $9,540 and has no outstanding loans. The company requires a minimum $8,140 cash palance at each month-end. Loans taken to keep this minimum balance require payment of 1% interest at each month-end. Any preliminary cash balance of more than $8,140 at month-end is used to repay loans. Budgeted cash receipts (other than for loans eceived) and budgeted cash payments (other than for interest or loan payments) follow. Cash receipts (other than for loans received) Cash payments (other than for interest-or loan payments) June $ 26,400 30,900 July $ 34,400 32,400 August $ 42,400 34,400 Prepare a cash budget for June, July, and August. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round final answers to the nearest whole dollar.

Q: OCF analysis

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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.