Tadeo Corp. has provided a part of its budget for the second quarter: Apr May Jun Cash collections $40,000 $45,000 $45,000 Cash payments: Purchases of direct materials 5,000 7,000 7,000 Operating expenses 7,000 7,000 7,000 Capital expenditures 20,000 5,000 0 The cash balance on April 1 is $13,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of May. A. $53,000 B. $19,000 C. $47,000 D. $66,000
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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|
Apr
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May
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Jun
|
|
Cash collections
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$40,000
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$45,000
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$45,000
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|
Cash payments:
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|
|
|
|
Purchases of direct materials
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5,000
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7,000
|
7,000
|
|
Operating expenses
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7,000
|
7,000
|
7,000
|
|
Capital expenditures
|
20,000
|
5,000
|
0
|
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