The following data are from the budget of Ritewell Publishers. Half the company’s sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $160, and total sales in January were $804. February March April Total sales $ 460 $ 480 $ 440 Cash purchases 135 145 125 Credit purchases 105 95 105 Labor and administrative purchases 95 95 95 Taxes, interest, and dividends 75 75 75 Capital expenditures 230 0 0 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.)
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 following data are from the budget of Ritewell Publishers. Half the company’s sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $160, and total sales in January were $804.
| February | March | April | |||||||||
| Total sales | $ | 460 | $ | 480 | $ | 440 | |||||
| Cash purchases | 135 | 145 | 125 | ||||||||
| Credit purchases | 105 | 95 | 105 | ||||||||
| Labor and administrative purchases | 95 | 95 | 95 | ||||||||
| Taxes, interest, and dividends | 75 | 75 | 75 | ||||||||
| Capital expenditures | 230 | 0 | 0 | ||||||||
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