Current Corporation has a cash balance of $24,000 on May 1. The company must maintain a minimum cash balance of $14,000. During May, expected cash receipts are $102,000. Cash disbursements during the month are expected to total $120,000. Ignoring interest payments, during May the company will need to borrow:
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 1:
Current Corporation has a cash balance of $24,000 on May 1. The company must maintain a minimum cash balance of $14,000. During May, expected cash receipts are $102,000. Cash disbursements during the month are expected to total $120,000. Ignoring interest payments, during May the company will need to borrow:
question 2:
Cupcakes Incorporated plans to sell 18,000 units of product C during April and 26,000 units during May. Sales of product C during March were 11,500 units. Past experience has shown that end-of-month inventory should be equal to 20% of the next month's sales. On March 31, this requirement was met. Based on these data, how many units of Product C must be produced during the month of April?
question 3:
Goblet Co. is working on its
question 4:
Piano Inc uses the number of music lessons provided as its measure of activity. During April, the company budgeted for 300 music lessons, but its actual level of activity was 295 music lessons. Salary expense is a mixed cost of $4,100 per month plus $34 per music lesson. Salary expense in the planning (static) budget is closest to:
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