For May, Young Company has budgeted its cash receipts at P125,000 and its cash disbursements at P138,000. The company's cash balance on May 1 is P17,000. If the desired May 31 cash balance is P20,000, then how much cash must the company borrow during the month (before considering any interest payments)? * P16,000 P4,000 P8,000 P12,000
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.
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