following table lists data from the budget of Ritewell Publishers. Half the company’s sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $47, and total sales in January were $214. Assume all expenses, other than purchases, are cash transactions. February March April Total sales $234 $254 $214 Purchases of materials For cash 87 97 77 For credit 57 47 57 Other expenses 47 47 47 Taxes, interest, and dividends 27 27 27 Capital investment 30 0 0 Complete the cash budget in the following table.
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.
he following table lists data from the budget of Ritewell Publishers. Half the company’s sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $47, and total sales in January were $214. Assume all expenses, other than purchases, are cash transactions.
| February | March | April | |
| Total sales | $234 | $254 | $214 |
| Purchases of materials | |||
| For cash | 87 | 97 | 77 |
| For credit | 57 | 47 | 57 |
| Other expenses | 47 | 47 | 47 |
| Taxes, interest, and dividends | 27 | 27 | 27 |
| Capital investment | 30 | 0 | 0 |
Complete the
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