July August September Cash collections $67,000 $39,000 $43,000 Cash payments: Purchases of direct materials 37,000 32,000 25,000 Operating expenses 10,000 16,000 24,000 Capital expenditures 0 34,000 8,000 The cash balance on June 30 is projected to be $15,000. Based on the above data, calculate the shortfall the company is projected to have at the end of August OA. $35,000 OB. $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.
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