C-Cubed had the following information from the end of last year for its Mountain Bikes: Budgeted Bike Sales for October Budgeted Bike Sales for November Budgeted Bike Sales for December Desired Ending Finished Goods Inventory Cash Collected from Sales in November Cash Available on November 1 Cash Disbursements in November Interest Paid During November How much would C-Cubed have to borrow to have a November ending cash balance of $25,000? 115 bikes 100 bikes 120 bikes 5% of the following month's unit sales $40,000 $5,000 $35,000 $500 Multiple Choice $15.500 $5,000 $5.500 $15,000
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.
Total cash available in November = Beginning balance + Collection from sales - Cash disbursement - Interest paid
= $5,000 + $40,000 - $35,000 - $500
= $9,500
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