A hardware store has budgeted sales of $36,000 for its power tool department in July. Management wants to have $7,000 in power tool inventory at the end of July. Its beginning inventory of power tools is expected to be $6,000. What is the budgeted dollar amount of merchandise purchases? a. $36,000 c. $42,000 e. $37,000 b. $43,000 d. $35,000
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 hardware store has budgeted sales of $36,000 for its power
tool department in July. Management wants to have $7,000
in power tool inventory at the end of July. Its beginning inventory
of power tools is expected to be $6,000. What is the
budgeted dollar amount of merchandise purchases?
a. $36,000 c. $42,000 e. $37,000
b. $43,000 d. $35,000
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