Company A’s cash budget for May is summarized below. Beginning cash balance $12,000 Total collections from customers $350,000 Total cash disbursements $430,000 Total financing $85,000 What is the balance of cash reported in the company’s budgeted balance sheet at the end of May? a)$19,000 b)$17,000 c)$15,000 d)$13,000
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.
Company A’s
|
Beginning cash balance |
$12,000 |
|
Total collections from customers |
$350,000 |
|
Total cash disbursements |
$430,000 |
|
Total financing |
$85,000 |
What is the balance of cash reported in the company’s budgeted
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