Prepare the cash budget for Company X for the month of June using the following information: Cash balance at the end of the year: $5,500 Budgeted cash receipts for June: $16,875 Budgeted cash payments for June are: $34,850 The company has a line of credit that allows them to borrow funds. Funds must be borrowed on the first day of the month and repaid on the last day of the month. Ignore interest for this question The company has a minimum desired cash balance of $5000 for each month.
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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