Cebu Branch submitted the following data to its home office in Manila for 20x1, its first year of operation: Sales P2,300,000; Shipments from Home Office P1,850,000; Operating expenses P235,000; Home Office Current P480,000. Shipments to the branch are billed at cost. The December 31 inventory of the branch was P255,500. What was the balance of the Investment in Branch account on December 31, 20x1 on the home office books?
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.
Cebu Branch submitted the following data to its home office in Manila for 20x1, its first year of operation: Sales P2,300,000; Shipments from Home Office P1,850,000; Operating expenses P235,000; Home Office Current P480,000. Shipments to the branch are billed at cost. The December 31 inventory of the branch was P255,500. What was the balance of the Investment in Branch account on December 31, 20x1 on the home office books?
Step by step
Solved in 2 steps
