A company is preparing its cash budget for the first quarter of the year. It has $8700 in cash at the beginning of the period. Cash sales for the quarter are budgeted at $182000. Selling and administrative expenses are budgeted at $59000, which includes $11000 depreciation. Cash expenses are paid in the month incurred. Cash payment for inventory purchases are budgeted at $139500. The desired cash balance on March 31 is $10400. How much financing will the company need during the quarter? O $3200 O $0 O $7200
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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