Roberts Supply, Inc. provides the following data taken from its third quarter budget: Jul Aug Sep Cash collections $82,000 $65,000 $60,000 Cash payments: Purchases of direct materials 48,000 29,000 50,000 Operating expenses 9,000 16,000 20,000 Capital expenditures 0 32,000 6,000 The cash balance on June 30 is projected to be $11,000. Based on the above data, calculate the cash balance the company is projected to have at the end of September
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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|
Jul
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Aug
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Sep
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|
Cash collections
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$82,000
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$65,000
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$60,000
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|
Cash payments:
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|
|
|
|
Purchases of direct materials
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48,000
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29,000
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50,000
|
|
Operating expenses
|
9,000
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16,000
|
20,000
|
|
Capital expenditures
|
0
|
32,000
|
6,000
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