Bullish Boats, a boat manufacturer, has created a September budget based on the following data: $700,000 in sales At the end of August, product inventory was at $300,000. On September 1st, there was a cash balance of $25,000 in the bank. For September, $80,000 in selling and administrative expenses are budgeted and paid in cash. For September, the depreciation expense (not included in SG&A expenses) is planned at $40,000. On September 30, the merchandise inventory is expected to be $300,000. The cost of products sold accounts for 85% of the total sales price. All purchases must be made in cash. There are no charges for interest or income taxes. The budgeted cash disbursements for September are: Show work please.
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.
Bullish Boats, a boat manufacturer, has created a September budget based on the following data: $700,000 in sales At the end of August, product inventory was at $300,000. On September 1st, there was a cash balance of $25,000 in the bank. For September, $80,000 in selling and administrative expenses are budgeted and paid in cash. For September, the
The budgeted cash disbursements for September are:
Show work please.
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