Malloy can see that her present plan will not provide sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blankshort at the end of December, with no time left to adjust.
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.
At the beginning of the school year, Katherine Malloy decided to prepare a
| Cash balance, September 1 (from a summer job) | $5,750 |
| Purchase season football tickets in September | 210 |
| Additional entertainment for each month | 275 |
| Pay fall semester tuition in September | 3,700 |
| Pay rent at the beginning of each month | 600 |
| Pay for food each month | 235 |
| Pay apartment deposit on September 2 (to be returned December 15) | 500 |
| Part-time job earnings each month (net of taxes) | 1,400 |
Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
Static
c. Malloy can see that her present plan will not provide sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blankshort at the end of December, with no time left to adjust.
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