ased on the following data, prepare a cash budget (in proper form with labels) for July and August. Forecast sales May $12,000 June 15,000 July $16,000 August $12,000 Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale Accounts payable are paid 100% 2 months after the purchase Expected A/P May $5,000 June $6,000 July $7,000 August $8,000 In addition to purchases, there are utility bills of $1,500 each month Beginning cash for July is $3,800
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.
Based on the following data, prepare a
May $12,000
June 15,000
July $16,000
August $12,000
Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale
Accounts payable are paid 100% 2 months after the purchase
Expected A/P
May $5,000
June $6,000
July $7,000
August $8,000
In addition to purchases, there are utility bills of $1,500 each month
Beginning cash for July is $3,800
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