Kk140. Hobbies Unlimited, a wholesaler, has a sales budget for next month of $300,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired. Beginning accounts payable is $76,000. The ending balance in accounts payable for next month will be a. $122,000. b. $120,000. c. $118,000. d. $78,000.
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.
Kk140.
Hobbies Unlimited, a wholesaler, has a sales budget for next month of $300,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired. Beginning accounts payable is $76,000. The ending balance in accounts payable for next month will be
a. $122,000.
b. $120,000.
c. $118,000.
d. $78,000.
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