Using the following information: a. Beginning cash balance on March 1, $76,000. b. Cash receipts from sales, $305,000. c. Cash payments for direct materials, $134,000. d. Cash payments for direct labor, $77,000. e. Cash payments for overhead, $41,000. f. Cash payments for sales commissions, $8,000 g. Cash payments for interest, $150 (1% of beginning loan balance of $15,000) h. Cash repayment of loan, $15,000. Prepare a cash budget for March for Gado Company.
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.
![Using the following information:
a. Beginning cash balance on March 1, $76,000.
b. Cash receipts from sales, $305,000.
c. Cash payments for direct materials, $134,000.
d. Cash payments for direct labor, $77,000.
e. Cash payments for overhead, $41,000.
f. Cash payments for sales commissions, $8,000
g. Cash payments for interest, $150 (1% of beginning loan balance of $15,000)
h. Cash repayment of loan, $15,000.
Prepare a cash budget for March for Gado Company.
GADO COMPANY
Cash Budget
March
Total cash available
Less: Cash payments for
Total cash payments
Loan activity
Loan balance, end of month](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb034729f-db63-4235-9b33-79c3c77be50a%2F0898f7c3-6f11-4a27-8b89-e46fea08db78%2F67noz8_processed.png&w=3840&q=75)
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