X Corp has the following budgeted data: Cash, beginning, is 100,000; Cash, ending, is 80,000. Net cash flow provided by financing activities was 30,000; issuance of shares for cash is 50,000; Acquisition of fixed assets costing 80,000 (50% down payment and the balance payable by next year); Gain on sale of certain fixed assets with book value of 10,000, at gain of 5,000. If Accounts receive and Accounts payable increased by 4,000 and 6,000, respectively, what is the budgeted net income / loss? • 22,000 loss • 8,000 loss • 27,000 loss • 8,000 net income • None of the above
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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