The controller for Eddy Co. has provided the following information pertaining to the cash Budget for the month of January. Projected January 1 Cash Balance $50,000 January Cash Payments for Materials $100,000 January Direct Labor Cash Payments $125,000 January Cash Collections from customers $500,000 January Sale of Securities $70,000 January Overhead Cash Payments $40,000 January Depreciation Expense $10,000 January Selling Expenses Cash Payments $20,000 Eddy's Cash Budget will report the following:
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 controller for Eddy Co. has provided the following information pertaining to the
|
Projected January 1 Cash Balance |
$50,000 |
|
January Cash Payments for Materials |
$100,000 |
|
January Direct Labor Cash Payments |
$125,000 |
|
January Cash Collections from customers |
$500,000 |
|
January Sale of Securities |
$70,000 |
|
January |
$40,000 |
|
January |
$10,000 |
|
January Selling Expenses Cash Payments |
$20,000 |
Eddy's Cash Budget will report the following:
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