Cougar Hotel is preparing a cash budget for October. The hotel has $12,000 cash at the ending of September and anticipates $30,000 in cash receipts and $34,500 in cash disbursements. Cougar Hotel has an agreement with its bank to maintain a cash balance of at least $10,000. As of September 31st, it owes $15,000 to the bank. To maintain the $10,000 required balance, during October the company must: borrow $4,500. borrow $2,500. borrow $10,000. borrow $7,500.
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.
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Cougar Hotel is preparing a
cash budget for October. The hotel has $12,000 cash at the ending of September and anticipates $30,000 in cash receipts and $34,500 in cash disbursements. Cougar Hotel has an agreement with its bank to maintain a cash balance of at least $10,000. As of September 31st, it owes $15,000 to the bank. To maintain the $10,000 required balance, during October the company must:borrow $4,500.
borrow $2,500.
borrow $10,000.
borrow $7,500.
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