The following budgeted May cash information is available for Salado Corp.: Net after-tax income $201,600 Depreciation expense 33,720 Accrued income tax expense 49,200 Increase in Accounts Receivable for month 4,800 Decrease in Accounts Payable for month 4,200 Estimated bad debts expense 2,460 Dividends declared in May 21,000 Dividends paid in May 28,200 If Salado’s May 1 cash balance is $13,800, what is the company’s budgeted May 31 cash balance? $Answer
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.
Cash balance
The following budgeted May cash information is available for Salado Corp.:
| Net after-tax income | $201,600 |
| 33,720 | |
| Accrued income tax expense | 49,200 |
| Increase in |
4,800 |
| Decrease in Accounts Payable for month | 4,200 |
| Estimated |
2,460 |
| Dividends declared in May | 21,000 |
| Dividends paid in May | 28,200 |
If Salado’s May 1 cash balance is $13,800, what is the company’s budgeted May 31 cash balance? $Answer
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