Duffy Corp. has provided a part of its budget for the second quarter. Apr $40,000 Cash collections Cash payments: Purchases of direct materials 6,000 Operating expenses 6,000 Capital expenditures 20,000 The cash balance on April 1 is $13,000. Assume that there will be no financing transactions or costs du OA. $42,000 B. $71,000 C. $53,000 O D. $61,000 May Jun $40,000 $42,000 5,000 6,000 0 5,000 6,000 10,000 …….
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.
![Duffy Corp. has provided a part of its budget for the second quarter.
Apr
$40,000
Cash collections
Cash payments:
Purchases of direct materials
OA. $42,000
OB. $71,000
O C. $53,000
O D. $61,000
5,000
6,000
Operating expenses
6,000
6,000
Capital expenditures
10,000
20,000
The cash balance on April 1 is $13,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of April.
4
May
$40,000
5,000
6,000
0
Jun
$42,000
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