The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information: • Sales at $457,000, all for cash • Merchandise inventory on October 31 was $187,000. • The cash balance November 1 was $29,000. • Selling and administrative expenses are budgeted at $58,800 for November and are paid for in cash. • Budgeted depreciation for November is $23,900. • The planned merchandise inventory on November 30 is $232,000. • The cost of goods sold is 60% of the selling price. • All purchases are paid for in cash. The budgeted cash disbursements for November are: $378,000 $333,000 $515,800 $288,000
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.
The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:
• Sales at $457,000, all for cash
• Merchandise inventory on October 31 was $187,000.
• The cash balance November 1 was $29,000.
• Selling and administrative expenses are budgeted at $58,800 for November and are paid for in cash.
• Budgeted
• The planned merchandise inventory on November 30 is $232,000.
• The cost of goods sold is 60% of the selling price.
• All purchases are paid for in cash.
The
$378,000
$333,000
$515,800
$288,000
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