Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance. September 1, $41,000 b. Budgeted cash receipts from September sales, $261,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $71,000; and September (budgeted). $103,000. Payments for direct materials follow: 60% in the month of purchase and 40% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $39,000. e. Budgeted depreciation expense for September, $3,800. f. Budgeted cash payment for dividends in September, $51,000. g. Budgeted cash payment for income taxes in September, $10,600. h. Budgeted cash payment for loan interest in September, $1,700. PTO COMPANY Cash Budget Beginning cash balance Total cash available Total cash payments Ending cash balance September $ 0 0

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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.