Santos Co. is preparing a cash budget for February. The company has $14.000 cash at the beginning of February and anticipates $69,000 in cash receipts and $119,000 in cash disbursements during February. What amount, if any. must the company borrow during February to maintain a $5,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, If any, should be indicated with minus sign.) For Month Ended February 28 SANTOS CO. Cash Budget Beginning cash balance Total cash available Preliminary cash balance Ending cash balance
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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