Rockwall Adventures Combined Cash Budget February and March 1 2 3 March February 16,900 | $ ? 4 5 Beginning cash balance 6 Plus: Cash collections ? 80,000 2,000 7 Plus: Cash from sale of plant assets Total cash available Less: Cash payments (purchase inventory) 10 Less: Cash payments (operating expenses) 11 Total cash payments 12 (1) Ending cash balance before financing 13 Minimum cash balance desired 14 Cash excess (deficiency) 15 Financing: 107,300 | $ ? $ 47,700 98,400 | $ ? $ 21,000 ? $ 8 9 $ 41,400 25,100 21,000 ? Plus: New borrowings ? $ ? 16 ? 17 Less: Debt repayments ? Less: Interest payments 19 (2) Total effects of financing 20 Ending cash balance (1) + (2) 18 ? ? ? $ ? $ ? 21
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.
You recently began a job as an accounting intern at Rockwall Adventures. Your first task was to help prepare the
Rockwall Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Rockwall Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available.
Requirement: Complete the following cash budget:
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