Ceres Space Corporation’s allotted a budgeted monthly sales are P3,000. In this case, forty percent of its customers pay in the first month and take the 2 percent discount. The remaining sixty percent pay in the month following the sale and don’t receive a discount. Ceres' bad debts are very small and are excluded from this analysis. Purchases for next month’s sales are constant each month at P1,500. Other payments for wages, rent, and taxes are constant at P700 per month. Construct a single month’s cash budget with the information given. What is the average cash gain or (loss) during a typical month for this corporation? *
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.
Ceres Space Corporation’s allotted a budgeted monthly sales are P3,000. In this case, forty percent of its customers pay in the first month and take the 2 percent discount. The remaining sixty percent pay in the month following the sale and don’t receive a discount. Ceres'
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