Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $6,300. Borrow $10,000. Repay $6,300. Repay $3,700. Borrow $6,400.
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.
Western Company is preparing a
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Borrow $6,300.
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Borrow $10,000.
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Repay $6,300.
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Repay $3,700.
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Borrow $6,400.
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