Schedule of cash payments for a service companySafeMark Financial Inc. was organized on February 28. Projected selling andadministrative expenses for each of the first three months of operations are asfollows:March 578,400April 83,500May 96,900Depreciation, insurance, and property taxes represent $10,000 of the estimatedmonthly expenses. The annual insurance premium was paid on February 28, andproperty taxes for the year will be paid in June. Seventy percent of the remainder ofthe expenses are expected to be paid in the month in which they are incurred, withthe balance to be paid in the following month.Prepare a schedule indicating cash payments for selling and administrative expensesfor March, April, and May
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.
Schedule of cash payments for a service company
SafeMark Financial Inc. was organized on February 28. Projected selling and
administrative expenses for each of the first three months of operations are as
follows:
March 578,400
April 83,500
May 96,900
Depreciation, insurance, and property taxes represent $10,000 of the estimated
monthly expenses. The annual insurance premium was paid on February 28, and
property taxes for the year will be paid in June. Seventy percent of the remainder of
the expenses are expected to be paid in the month in which they are incurred, with
the balance to be paid in the following month.
Prepare a schedule indicating cash payments for selling and administrative expenses
for March, April, and May
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