Actual and projected sales of an entity for September and October are as follows September (actual) Cash sales= 20000 Credit sales= 50000 October (projected) Cash sales =30000 Credit sales =55000 All credit sales are collected in the month following the month in which the sales is made the September 30 cash balance is 23000 cash disbursement in October are projected to be 94000to maintain a minimum cash balance of 15000 on October 31 the entity will need to borrow A. 0 B. 6000 C. 11000 D. 16000
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.
Actual and projected sales of an entity for September and October are as follows
September (actual)
Cash sales= 20000
Credit sales= 50000
October (projected)
Cash sales =30000
Credit sales =55000
All credit sales are collected in the month following the month in which the sales is made the September 30 cash balance is 23000 cash disbursement in October are projected to be 94000to maintain a minimum cash balance of 15000 on October 31 the entity will need to borrow
A. 0
B. 6000
C. 11000
D. 16000
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