Marsha Incorporated has the following budgeted data for the coming year: Cash balance, beginning Collections from customers Direct materials purchases Expenses: Operating expenses Payroll Income taxes Other: Machinery purchases $ 16,500 146,500 26,500 53,000 76,500 6,000 31,500 Operating expenses include $21,500 depreciation for buildings and equipment. All purchases of materials are paid for purchase. The company requires a minimum cash balance of $25,000. Required: Compute the amount the company needs to finance or the excess cash available for Marsha to invest. (Cash shortage indicated with a minus sign.)
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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