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.
You have been hired by the McClosky Corporation and they manufacture industrial dye.
Milestone 3:
I. Budgeted Balance Sheet
J.
K. Budget Presentation and please address the following questions:
(1) The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter.
(2) The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information?
(3) The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization.
(4) Please explain the to the management team how a competitor’s actions can affect business planning.
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