For the month of October, a company predicts total cash collections to be P1 million. Also for October, it estimates that its beginning cash balance will be P50,000 and that it will borrow cash in the amount of P70,000. If the company estimates an ending cash balance of P30,000 for October, what must its projected cash disbursements be?
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.
1. For the month of October, a company predicts total cash collections to be P1 million. Also for October, it estimates that its beginning cash balance will be P50,000 and that it will borrow cash in the amount of P70,000. If the company estimates an ending cash balance of P30,000 for October, what must its projected cash disbursements be?
2. A hospital has provided you with the following budget information for April
Cash collections P876,000
April 1 cash balance 23.000
Cash disbursements 978,600
The hospital has a policy of maintaining a minimum cash balance of P20,000 and borrows only in P1,000 increments. How much will the hospital borrow in April?
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