orona Inc., a trading firm, has budgeted its activity for December according to the following information: (a) Sales at $550,000, all for cash (b) Merchandise Inventory on November 30 was $300,000 (c) Budgeted depreciation for December is $35,000 (d) The cash balance at December 1 was $25,000 (e) Selling and Admin expenses are budgeted at $60,000 for December and are paid in cash. (f) The planned merchandise inventory on December 31 s $270,000 (g) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash. The budgeted cash disbursements for December are? A. $477,500 B. $472,500 C. $442,500 D. $382,500
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.
Corona Inc., a trading firm, has budgeted its activity for December according to the following information:
(a) Sales at $550,000, all for cash
(b) Merchandise Inventory on November 30 was $300,000
(c) Budgeted
(d) The cash balance at December 1 was $25,000
(e) Selling and Admin expenses are budgeted at $60,000 for December and are paid in cash.
(f) The planned merchandise inventory on December 31 s $270,000
(g) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash.
The
A. $477,500
B. $472,500
C. $442,500
D. $382,500
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