The following budget information is available for Crescent Company for January 2014: Sales Cost of goods sold Freight out Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Percentage of sales on credit it $ OA) $312,500. B) $247,50. Oc) $262,500. OD) $232,500. 800,000 540,000 2,500 100,000 5% of sales 20,000 50,000 60,000 10,000 80% All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:
The following budget information is available for Crescent Company for January 2014: Sales Cost of goods sold Freight out Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Percentage of sales on credit it $ OA) $312,500. B) $247,50. Oc) $262,500. OD) $232,500. 800,000 540,000 2,500 100,000 5% of sales 20,000 50,000 60,000 10,000 80% All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The following budget information is available for Crescent Company for January 2014:
Sales
Cost of goods sold
Freight out
Administrative salaries
Sales commissions
Advertising
Depreciation on store equipment
Rent on administration building
Miscellaneous administrative expenses
Percentage of sales on credit
t
$
OA) $312,500.
B) $247,50.
Oc) $262,500.
OD) $232,500.
800,000
540,000
2,500
100,000
5% of sales
20,000
50,000
60,000
10,000
80%
All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and
administrative expenses would be:
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