Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30. a. Beginning cash balance, September 1, $40,000. b. Budgeted cash receipts from sales in September, $255,000. c. Raw materials are purchased on account. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase. d. Budgeted cash payments for direct labor in September, $40,000. e. Budgeted depreciation expense for September, $4,000. f. Other cash expenses budgeted for September, $60,000. g. Accrued income taxes payable in September, $10,000. h. Bank loan interest payable in September, $1,000.
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 the September
relates to expected cash receipts and cash payments for the month ended September 30. a. Beginning cash balance, September 1, $40,000.
b. Budgeted cash receipts from sales in September,
$255,000.
c. Raw materials are purchased on account.
Purchase amounts are August (actual), $80,000;
and September (budgeted), $110,000. Payments
for direct materials are made as follows: 65% in
the month of purchase and 35% in the month
following purchase.
d. Budgeted cash payments for direct labor in
September, $40,000.
e. Budgeted
$4,000.
f. Other cash expenses budgeted for September,
$60,000.
g. Accrued income taxes payable in September,
$10,000.
h. Bank loan interest payable in September, $1,000.
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