Garda purchased $690,000 of merchandise in August and budgets merchandise purchases of $670,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases $ 670,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases
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.
![Garda purchased $690,000 of merchandise in August and budgets merchandise purchases of $670,000 in September.
Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the month after the purchase.
Prepare a schedule of cash payments for merchandise purchases for September.
GARDA
Schedule of Cash Payments for Merchandise Purchases
September
Merchandise purchases
$
670,000
Cash payments for:
Current period purchases
Prior period purchases
Total cash payments for merchandise purchases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2Fb940ae6a-cb8c-4a1b-84b9-0894c8e021b7%2F0i3wtbj_processed.png&w=3840&q=75)
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