West Depot is a retaler that is preparing ks budget for the upcoming fiscal year. Management has prepared the folowing summary of ts budgeted cash flows: 1st Quarter 180000 2nd Quarter 340000 3rd Quarter 205000 4th Quarter 235000 Sales Total Cash Disbursments: Direct Material 160000 222000 135000 292000 Drect Labor 40000 55000 34000 73000 Manufacturing Overhead Seling and adrninistrative 38000 13000 45000 62000 82000 15000 21000 27000 The company's beginning cash balance for the upcoming fiscal year will be $15,000. The company requires a minimum cash balance of $5,000 and may borrow any amount needed from a bocal bank at a quarterly interest rate of 4%. The company may borrow any amount at the beginning of any quarter and may repay its bans, or any part of ts bans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. Assime simple interest for the shake of the simplicity.

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Q: Explain the benefits of budgeting.

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Q: Discuss the importance of the cash budget.

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Q: What are the differences between top-down and bottom- un budgeting?

A: Lets understand the basics. Budget is prepared in order to estimate profit and loss for the future…

Q: Describe what a cash budget entails.

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Q: Describe the benefits of budgeting.

A:

Q: dvantage of preparing a cash budget

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A:

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A: Option d is correct.

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Q: How to do Cash Budget?

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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.