Use the following information to prepare a cash budget for the month ended January 31 for Garcia Company. The company requires a minimum $30,000 cash balance at the end of each month. Any preliminary cash balance above $30,000 is used to repay loans (if any). Garcia has a $2,000 loan outstanding at the beginning of January. a. January 1 cash balance, $30,000 d. Budgeted cash payments for labor, $33,400 b. Cash receipts from sales, $132,000 e. Other budgeted cash expenses,* $8,200 c. Budgeted cash payments for materials, $63,500 f. Cash repayment of bank loan, $2,000 *Including loan interest for January.
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.
Use the following information to prepare a
Company. The company requires a minimum $30,000 cash balance at the end of each month. Any preliminary
cash balance above $30,000 is used to repay loans (if any). Garcia has a $2,000 loan outstanding
at the beginning of January.
a. January 1 cash balance, $30,000 d. Budgeted cash payments for labor, $33,400
b. Cash receipts from sales, $132,000 e. Other budgeted cash expenses,* $8,200
c. Budgeted cash payments for materials, $63,500 f. Cash repayment of bank loan, $2,000
*Including loan interest for January.
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