During December, the capital budget indicates a $280000 purchase of equipment for cash. The ending November cash balance is budgeted to be $39800. Cash receipts are $840700, and cash disbursements are $610800 during December. The company wants to maintain a minimum cash balance of $19700. What is the minimum cash loan that must be planned to be borrowed from the bank during December? $50100 $10300 $0 $30000
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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