ABC Company has a cash balance of $37,000 on August 1 and requires a minimum ending cash balance of $24,160. Cash receipts from sales budgeted for August are $200,160. Cash disbursements budgeted for August include inventory purchases, $29,000; other manufacturing expenses, $55,000; operating expenses, $40,000; bond retirements, $62,000; and dividend payments, $27,000. Required: Prepare a cash budget for ABC Company for August. Beginning cash balance Cash Receipts: Total cash available Cash Disbursements: Total cash disbursements Ending cash balance August
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.
![ABC Company has a cash balance of $37,000 on August 1 and requires a minimum ending cash balance of $24,160. Cash receipts
from sales budgeted for August are $200,160. Cash disbursements budgeted for August include inventory purchases, $29,000; other
manufacturing expenses, $55,000; operating expenses, $40,000; bond retirements, $62,000; and dividend payments, $27,000.
Required:
Prepare a cash budget for ABC Company for August.
Beginning cash balance
Cash Receipts:
Total cash available
Cash Disbursements:
Total cash disbursements
Ending cash balance
August](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6e06f7-645e-4386-9474-5c72c47a008e%2F86e9e746-e402-411e-a55e-ae5796562e2c%2Ftih1mq_processed.jpeg&w=3840&q=75)
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