а. Mamboleo transport activity had an income of shs 1,440,000 for last year. We expect & that due to increase in membership, the sales income in the following year will increase to sh 1,800,000. The budgeted income for the previous year was spread as follows:- 3 months 6. months 9 months 12 months Sales (ksh) 547,200 806,400 1,080,000 1,440,000 Suppose that we have the following information relating to the following year's expenses: Purchase of goods shs 600,000 Transport of goods shs 300,000 Salaries shs 180,000 Required: i) Prepare a working budget for stores activity for the following year.
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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