Berman Company is preparing its budget for the third quarter. Cash balance on July 31 was $30,000. Assume there is no minimum balance of cash required and no borrowing is undertaken. Additional budgeted data are provided here: July Aug Sep Cash collections $53,000 $53,000 $51,000 Cash payments Purchases of direct materials 19,000 22,000 21,000 Operating expenses 29,000 30,000 22,000 Capital expenditures 9,000 12,000 12,000 Calculate the projected balance of cash at the end of August. OA. $19,000 OB. $34,000 OC. $31,000 OD. $117,000
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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