Cranes, Inc. provided the following budgeted information for March through July: Projected sales Projected merchandise purchases Inventory at end of month March April May July $85770 $100860 $94300 $108240 $115950 $67240 $75770 $61750 $54610 $59860 $11150 $9270 O $4995. O $6890. O $5250. O $3675. $9840 June $10170 $11730 Cranes estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $25420 per month of which depreciation is $25420 of this amount. Crane pays operating expenses in the month incurred. The income tax rate is 30%. How much is budgeted net income for May?

Q: A merchanding company reported the information below from its March master budget: $79,100 $74,200…

A: Solution: Net income for March = Retained earnings ending - Retained earnings beginning = 25400 -…

Q: Fill in the missing information from the following schedules: Sales Budget For the Year Ended…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Following is Budgeted Data of R Ltd. Prepare Cash Budget  for the quarter ended 31st March 2007.…

A: Cash budget is one of the important budget being prepared in business for the purpose of analysing…

Q: The following credit sales are budgeted by Wildhorse Co.: May   $514100 June   756000 July…

A: Cash inflow during the month includes all the cash receipts from the customers during the desired…

Q: FGH company budgeted merchandise purchases of 50,000 units next. The expected beginning inventory is…

A: Sales Budget and Production budget :Sales budget is prepared to show the no. of units to be sold in…

Q: Budgeted purchase ( in units ) for December are

A: Purchase budget: The Purchase budget is a budget prepared by the company to know the goods needs and…

Q: 3. Merchandise Purchases Budget CIT Merchandising has budgeted the following sales for the 2nd…

A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Q: Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred.…

A: Cash received would be calculated by multiplying the percentage of cash received by the budgeted…

Q: Peabody Company prepared the following purchases​ budget: MONTH BUDGETED PURCHASES June 35200 July…

A: The cash budget is prepared by the management to estimate the expected cash receipt and cash…

Q: The following credit sales are budgeted by Wildhorse Co.:   February   216000 March   302400 April…

A: The cash budget is prepared to record cash transactions during the period as receipt and…

Q: Blossom Design provided the following budgeted information for April through July: April May June…

A: Step 1:Cash budget is the estimation of budgeted cash recept & cash payment for the future…

Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…

A: Cash receipts means the amount of cash that is to be received by the entity from sale, services or…

Q: Customer amounts on account are collected 60% in the month of sale a sales. Oriole purchases and…

A: Budgeting involves estimating income and expenses over a given period. It is essentially a financial…

Q: A. In May 2020, the budget committee of Alia, Inc. assembles the following data in preparation of…

A: Budgeted merchandise to be purchased means value of merchandise which is to be sold to outside…

Q: een retaling company, is preparing the cash Estimated payments in August for purchases in August…

A: When there is cash outflow due to goods or services it is referred to as cash disbursement. Thus, it…

Q: Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May…

A: Budgeting is the process of estimating one's expenses and revenues for a certain time frame. It aids…

Q: Assume the following informaiton for Greg's Games for the month of June: Budgeted Cost of Goods Sold…

A: The option is as fallows

Q: Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following…

A: The question is based on the concept of Cost Accounting. Estimated purchases for August = $2,428,000…

Q: he company, a wholesaler, budgeted sales for the indicated months June Sales on account P1,800,000…

A: Solution 1: Budgeted sales for June = P2,040,000 Markup on cost = 25% Budgeted cost of goods sold =…

Q: Teleco Corp. is preparing its budget for the first quarter of 2018. The following data is provided:…

A: Base stock      = $ 10000 10% of the April Month's Cost of goods sold = $ 34000 x 10/100 = $ 3400…

Q: REQUIRED Use the information provided below to prepare the Direct Materials Purchases Budget for…

A: The budget is prepared to estimate the requirements for the future period.

Q: Cullumber Design provided the following budgeted information for April through July: April May June…

A: Please see answer and computation below.

Q: The following information was taken from Swifty Corporation cash budget for the month of July:…

A: Beginning cash balance 95,000 Add: Cash receipts 91,000 Available cash  186,000 Less: Cash…

Q: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be…

A: PRODUCTION BUDGETProduction Budget is a Forecast of the Production for the Budgeted Period of an…

Q: In September 2019, the budget committee of Jason Company assembles the following data: 1. Expected…

A: Lets understand the basics.Management prepare budget in order to estimate future profit and loss…

Q: Cullumber Company, a wholesaler, budgeted the following sales for the indicated months:…

A: Cost of goods sold = Total sales / (1 + markup) Cost of goods sold  for July = $4380000/(1+0.30) =…

Q: Ivanhoe Design provided the following budgeted information for April through July:   April May…

A: Cash disbursement means the amount paid in cash during a particular period. In the cash budget, it…

Q: Income Statement and Budgeted Balance Sheet. Crow Enterprises is a merchandising company that is…

A: The schedule of expected cash disbursement is prepared to estimate the cash payment during the…

Q: Riverbed Inc. provided the following information: April May Projected merchandise purchases $92,500…

A: Depreciation is an non cash expense and not form part ( it is excluded from cost )Only payment which…

Q: Carla Vistas, Inc. provided the following budgeted information for March through July:   March…

A: Budgets are the forecasts or estimates that are made for future period. These reflect future…

Q: Budgeted purchases in December are:

A: Opening inventory + Purchase - Sales = Closing inventory

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.