A merchanding company reported the information below from its March master budget: Cost of goods sold Cash paid for merchandise purchases Selling and administrative expenses Cash paid for selling and administrative expenses Retained earnings, March 1 Retained earnings, March 31 $78,600 $73,700 $33,600 $26,700 $18,700 $24,400 If the company does not plan to declare a dividend or incur any interest in the month, what is its budgeted sales for March? Ignore taxes. Multiple Choice $117,900 $1,200
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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