Revenue budget In the prior year, Grand Falls Bank (GFB) had $10,400,000 in business loans at an average interest rate percent as well as $8,320,000 in consumer loans with an average rate of 8 percent. GFB also has $1,950 invested in government securities that pay interest at an average rate of 2.5 percent. For the current year, GFB estimates that the volume of business loans will increase to $15,600,000, a interest rate will rise to 5 percent. It projects that consumer loans will be $10,400,000 and have an aver interest rate of 11 percent. The bank's government security investment will be $4,160,000 and will bear average interest rate of 4.5 percent. What is GFB's projected revenue for the current year? Projected revenue: $ 0
Revenue budget In the prior year, Grand Falls Bank (GFB) had $10,400,000 in business loans at an average interest rate percent as well as $8,320,000 in consumer loans with an average rate of 8 percent. GFB also has $1,950 invested in government securities that pay interest at an average rate of 2.5 percent. For the current year, GFB estimates that the volume of business loans will increase to $15,600,000, a interest rate will rise to 5 percent. It projects that consumer loans will be $10,400,000 and have an aver interest rate of 11 percent. The bank's government security investment will be $4,160,000 and will bear average interest rate of 4.5 percent. What is GFB's projected revenue for the current year? Projected revenue: $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Revenue budget
In the prior year, Grand Falls Bank (GFB) had $10,400,000 in business loans at an average interest rate of 3.5
percent as well as $8,320,000 in consumer loans with an average rate of 8 percent. GFB also has $1,950,000
invested in government securities that pay interest at an average rate of 2.5 percent.
For the current year, GFB estimates that the volume of business loans will increase to $15,600,000, and the
interest rate will rise to 5 percent. It projects that consumer loans will be $10,400,000 and have an average
interest rate of 11 percent. The bank's government security investment will be $4,160,000 and will bear an
average interest rate of 4.5 percent. What is GFB's projected revenue for the current year?
Projected revenue: $ 0
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