Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2022 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be? (c) Upon receipt of the budget, the team manager, June Jackson, has now informed you that, in keeping with industry players, the management of Pelican Merchandising have indicated an industry requirement to maintain a minimum cash balance of $185,000 each month. She has also noted that management is very keen on keeping the gearing ratio of the business as low as possible
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.
b) Another team member who is preparing the Budgeted
the same quarter ending March 31, 2022 and has asked you to furnish him with the figures
for the expected trade receivables and payables to be included in the statement. Is that a
reasonable request? If yes, what should these amounts be?
(c) Upon receipt of the budget, the team manager, June Jackson, has now informed you that, in
keeping with industry players, the management of Pelican Merchandising have indicated an
industry requirement to maintain a minimum cash balance of $185,000 each month. She
has also noted that management is very keen on keeping the gearing ratio of the business
as low as possible and would therefore prefer to cushion any gaps internally using equity
financing.
Based on the budget prepared, will the business be achieving this desired target? Suggest
three (3) internal strategies that may be employed by management to improve the
organization’s monthly
reflected in the budget prepared. Each strategy must be fully explained
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