The table contains the Sales estimates for the next year. The Purchases are 55% of Sales. Purchases are paid in the following month. The administrative expenses of $11,550 are paid each month Tax expenses of $16,458 are paid in March, June, September, and December each year. Rent expenses of $47,735 are paid in June and December. What is the cash outflow for March? Month Sales $ Month Sales $ Jan 87,400 July 21,931 Feb 89,751 Aug 78,038 Mar 78,038 Sep 87,400 Apr 21,931 Oct 78,038 May 87,400 Nov 89,751 June 89,751 Dec 21,931
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 table contains the Sales estimates for the next year.
- The Purchases are 55% of Sales. Purchases are paid in the following month.
- The administrative expenses of $11,550 are paid each month
- Tax expenses of $16,458 are paid in March, June, September, and December each year.
- Rent expenses of $47,735 are paid in June and December.
What is the
| Month | Sales $ | Month | Sales $ |
| Jan | 87,400 | July | 21,931 |
| Feb | 89,751 | Aug | 78,038 |
| Mar | 78,038 | Sep | 87,400 |
| Apr | 21,931 | Oct | 78,038 |
| May | 87,400 | Nov | 89,751 |
| June | 89,751 | Dec | 21,931 |
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