mation, complete the following cash budget:
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.
| ere are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. |
| April | May | June | ||||||||||
| Credit sales | $ | 689,000 | $ | 598,000 | $ | 751,000 | ||||||
| Credit purchases | 302,000 | 282,000 | 338,000 | |||||||||
| Cash disbursements | ||||||||||||
| Wages, taxes, and expenses | 137,000 | 129,000 | 179,000 | |||||||||
| Interest | 15,600 | 15,600 | 15,600 | |||||||||
| Equipment purchases | 53,500 | 6,600 | 248,000 | |||||||||
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The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. |
| Using this information, complete the following |
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