From the information below, prepare a cash budget for the period from January to April. Expected Sales Expected Purchase $ $ Jan. 60,000 Jan. 48,000 Feb. 40,000 Feb. 80,000 Mar. 45,000 Mar. 81,000 Apr. 40,000 Apr. 90,000 The wages to be paid to workers amount to $5,000 each month. Also, the bank balance on 1st January was $8,000.
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.
- From the information below, prepare a
cash budget for the period from January to April.
|
Expected Sales |
Expected Purchase |
||
|
|
$ |
|
$ |
|
Jan. |
60,000 |
Jan. |
48,000 |
|
Feb. |
40,000 |
Feb. |
80,000 |
|
Mar. |
45,000 |
Mar. |
81,000 |
|
Apr. |
40,000 |
Apr. |
90,000 |
The wages to be paid to workers amount to $5,000 each month. Also, the bank balance on 1st January was $8,000.
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