Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June.
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.
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May,
$110,000; and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in
the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of
budgeted cash payments for April, May, and June.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
