Cascade, Ltd., a merchandising firm, is preparing its cash budget for March. The following information is available concerning its inventories: Inventories at beginning of March $ 438,750 Estimated purchases for March 1,719,000 Estimated cost of goods sold for March 1,759,000 Estimated payments in March for purchases in February 431,000 Estimated payments in March for purchases prior to February 79,000 Estimated payments in March for purchases in March 70 % Required: What are the estimated cash disbursements in March?
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.
Exercise 13-34 (Algo) Estimate Cash Disbursements (LO 13-5)
Cascade, Ltd., a merchandising firm, is preparing its
| Inventories at beginning of March | $ | 438,750 | |
| Estimated purchases for March | 1,719,000 | ||
| Estimated cost of goods sold for March | 1,759,000 | ||
| Estimated payments in March for purchases in February | 431,000 | ||
| Estimated payments in March for purchases prior to February | 79,000 | ||
| Estimated payments in March for purchases in March | 70 | % | |
Required:
What are the estimated cash disbursements in March?
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