Atten’tive Company Finance Department has presented to the Heads of Department their cash payment projections data for three months: Payment for these purchases is normally made as follows; 20% in the month of purchase 70% in the month following the purchase 10% in the second month following the purchase. Purchase in February totaled $ 230,000 and in March $ 260,000 Required: You are required to prepare a Cash payment Budget for the period April to Jun
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.
Atten’tive Company Finance Department has presented to the Heads of Department their cash payment projections data for three months:
Payment for these purchases is normally made as follows;
20% in the month of purchase
70% in the month following the purchase
10% in the second month following the purchase.
Purchase in February totaled $ 230,000 and in March $ 260,000
Required:
You are required to prepare a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
