Current Attempt in Progress Adam S, managing director of "Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for the months of January and February 2020. To assist in this task, they have provided the following information: • Cash balance at the end of December 2019 is $64,400; • Each swimsuit is sold for $12 each and actual sale for November and December 2019 and projected sale for January and February 2020 are as follows: Cash Sales (Quantity) Credit Sales (Quantity) Total Sales November 4,600 units 5,600 units 10,200 units December 7,000 units 8,500 units 15,500 units January 6,100 units 8,100 units 14,200 units February 4,400 units 5,600 units 10,000 units

Current Attempt in Progress Adam S, managing director of "Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for the months of January and February 2020. To assist in this task, they have provided the following information: • Cash balance at the end of December 2019 is $64,400; • Each swimsuit is sold for $12 each and actual sale for November and December 2019 and projected sale for January and February 2020 are as follows: Cash Sales (Quantity) Credit Sales (Quantity) Total Sales November 4,600 units 5,600 units 10,200 units December 7,000 units 8,500 units 15,500 units January 6,100 units 8,100 units 14,200 units February 4,400 units 5,600 units 10,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

Current Attempt in Progress
Adam S, managing director of "Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for
the months of January and February 2020. To assist in this task, they have provided the following information:
• Cash balance at the end of December 2019 is $64,400;
• Each swimsuit is sold for $12 each and actual sale for November and December 2019 and projected sale for January and February
2020 are as follows:
Cash Sales (Quantity)
Credit Sales
(Quantity)
Total Sales
November
4,600
units
5,600
units
10,200
units
December
7,000 units
8,500 units
15,500 units
January
6,100 units
8,100 units
14,200 units
February
4,400 units
5,600 units
10,000 units

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