Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $36,800. Cash receipts are expected to be $643,000 and cash payments for purchases are expected to be $609,500. Other cash expenses expected are $27,200 selling and $33,700 general and administrative. The company desires a minimum cash balance at the end of each month of $32,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow during April is: Multiple Choice O O O $70,300. $102,300. $9,400. $0. $22,600.
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.
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