Pearl Poodle Grooming is preparing a budgeted income statement for 2021. Predicted sales for the year are $300,000 and cost of goods sold is 20% of sales. The expected selling & administrative expenses are $70,000 which includes $20,000 of depreciation. Pearl expects to pay $10,000 in dividends in 2021. The budgeted net income for 2021 is: O $160,000 O $150,000 O some amount other than those shown O $190,000 O $180,000 C170.000
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.
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