Sarah Edwards, division manager for Pillows Plus, is speaking to the controller, Diana Rothman, about the budgeting process. Sarah states, "I'm not an ace their purpose?" Answer Sarah's question. Answer Sarah's question by completing the following table. Budget Purpose Determines cost of goods sold and inventory for other budgets. Forecasts the sales revenue for the period. Presents the cash budget, the budgeted balance sheet, and the budgeted statement of cash flows. Presents the company's plan for purchasing property, plant and equipment, and other long-term assets.
Sarah Edwards, division manager for Pillows Plus, is speaking to the controller, Diana Rothman, about the budgeting process. Sarah states, "I'm not an ace their purpose?" Answer Sarah's question. Answer Sarah's question by completing the following table. Budget Purpose Determines cost of goods sold and inventory for other budgets. Forecasts the sales revenue for the period. Presents the cash budget, the budgeted balance sheet, and the budgeted statement of cash flows. Presents the company's plan for purchasing property, plant and equipment, and other long-term assets.
Chapter1: Financial Statements And Business Decisions
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Chapter 22. Question 1. Please fill in the blanks with the possible answers attached
Transcribed Image Text:Sarah Edwards, division manager for Pillows Plus, is speaking to the controller, Diana Rothman, about the budgeting process. Sarah states, "I'm not an accountant, so can you explain the three main parts of the master budget to me and tell me
their purpose?" Answer Sarah's question.
Answer Sarah's question by completing the following table.
Budget
Purpose
Determines cost of goods sold and inventory for other budgets.
Forecasts the sales revenue for the period.
Presents the cash budget, the budgeted balance sheet, and the budgeted statement of cash flows.
Presents the company's plan for purchasing property, plant and equipment, and other long-term assets.
Projects the operating income for the period through the budgeted income statement.
Transcribed Image Text:Budget
Capital expenditures
Cost of goods sold
Financial
Inventory
Operating
Sales
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