Santos Company is preparing a cash budget for February. The company has $12,000 cash at the beginning of February and budgets $69,000 in cash receipts from sales and $107,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $4,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Cash Budget February Beginning cash balance $ 12,000 Add: Cash receipts from sales 69,000 Total cash available 81,000 Less: Cash payments 107,000 Preliminary cash balance $ 21,000 Loan activity Additional loan Ending cash balance Loan balance, end of month

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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.