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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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- Question 3 The Plantd’ Company’s budgeted sales for the first quarter of 2020 are as follows: N$ January 400 000 February 320 000 March 480 000 Total 1 200 000 Credit sales are normally collected as follows: Percent (%) In the month of sale 50 The month following the sale 30 The second month following the month of the sale 20 Total…QUESTION 6 The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales: ● ● ● ● ● ● ● ● July August R105 000 R132 000 R165 000 September In October 2020, sales are expected to increase by 20% relative to sales in September 2020. Cash sales amount to 20% of total sales. 55% of all credit sales are collected in the month of sale, with a discount of 10% to those debtors who pay during this time. The outstanding credit sales are collected in equal instalments over the next two months. There are no bad debts. Purchases of raw materials are expected to be sufficient to meet 60% of the total sales for the next month. The company normally settles half of its creditors in the month following the month of purchase. The remaining creditors are paid two months after the month of purchase. Wages and salaries are paid to employees at the end of the month in which they are earned. Wages and salaries are expected to be: June July August September October R22 200 R20…QUESTION 1You are required to prepare a cash budget for the third quarter of 2020 for STS Corporation.Month Total sales(RM)March 170,000April 100,000May 140,000June 180,000July 200,000AugustSeptemberOctober220,000195,000180,000i) The company makes 10 percent cash sales, and the balance are collected as follows; 60percent is collected one month after sales, 30 percent is collected two months after sales,and 10 percent is collected three months after sales.ii) Purchase of raw materials is 50 percent of sales and are made one month prior to sales.Payment are made equally in the two months after the purchases.iii) Wages and salaries amounting to 10 percent of the last month’s sales. The company fixedmonthly expenses are RM3,000 for rent, RM2,000 for utilities, RM10,000 for depreciation,and RM1,500 for insurance.iv) A quarterly dividend of RM50,000 will be paid at the end of each quarter.v) The company plans to pay RM70,500 in cash for a new machinery installed in August.vi) Ending cash…
- Chapter 6 Budgeting Copr Goedl 2022 Sheba Industries reported the following budgeted sales in units for the first quarter of the fiscal year. Month Units June 3,300 July 2,960 August 3,120 The desired ending finished goods inventory should be 10% of the next month's sales in units. The inventory on May 31 contained 330 units, which is the beginning inventory for June. The manager is preparing the production budget. The desired ending finished goods inventory for June should be: 330 units 296 units 312 units 360 unitsCopr Goedl 2022 Sheba Industries reported the following budgeted sales in units for the first quarter of the fiscal year. Month Units June 3,300 July 2,960 3,120 August The desired ending finished goods inventory should be 10% of the next month's sales in units. The inventory on May 31 contained 330 units, which is the beginning inventory for June. The manager is preparing the production budget. The total number of units to be produced in July is: 2,976 units 3,272 units 3,266 units O3,596 unitsO e $650,000 Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $60,000. The Company intends to keep its cash balance at the end of the period at $10,000. Other operating expenses for this period are budgeted at $30,000, which includes $4,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the first half of 2022? O a. $12,000 O b. $10,000 OC None of the given answers O d. $20,000 O e. $22,000 Windows buü انتقل إلى الإعدادت لتنشيط S NEXT PAGE ENG DELL
- Question 3 Verstappen Motor Holdings is preparing its budget for the year ended 31 March 2022. The following information for the last six months has been prepared: Month April May June July August September REQUIRED: Cars Sold 20 40 25 34 45 42 Warranty claim expenses R 12 000 15 800 12 600 14 400 16 000 20 000 Q.3.2 If Verstappen Motor Holdings is budgeting to sell 50 cars, what will the total warranty cost be that they are likely to incur?Question 20 Hunt Chemicals is preparing a cash budget for June and July 2019. At the end of July 2019, the company has undertaken to repay a £100,000 loan to their bank which had been borrowed in February 2019 to enable the business to survive during the seasonal peak in the second quarter of the calendar year, April to June. The bank balance at 1 June 2019 is expected to be £17,500. Budgeted sales revenues are as follows: April 2019 May 2019 June 2019 July 2019 August 2019| £240,000 £360,000 £500,000 £600,000 £300,000 Additional information: (i) 70% of sales revenue is expected in the month of sales, subject to a 2% prompt payment discount. 20% of sales revenue is expected in the month following sales. 7% of sales revenue is expected to be received two months after sale and the remainder of sales revenue is expected to be uncollectable. (ii) The average selling price per unit is £100 and the average cost price is £75. 50% of the purchase price of goods is expected to be paid in the…189 Exercise 5-11 William Go is the owner and manager of the Kentucky Company. He is in the process of preparing a budget for the first six months of 2021, Income statement estimates for each month are given below: Jan. Feb. May March P92,000 P82,000 P102,000 P146,000 P172,000 P188,000 P50,000 P46,000 P56,000 P68,000 P88,000 April June Sales Cost of sales P96,000 28,000 Expenses Depreciation Total 16,000 8,000 P74,000 P68,000 P80,000 P18,000 P14,000 14,000 8,000 16,000 8,000 24,000 10,000 P98,000 P122,000 P134,000 22,000 8,000 10,000 Net income P22,000 P48,000 P50,000 P54,000 in certain balance sheet accounts during each month. (decreases) are given below: During the six-month period, William anticipates the following changes The increases and March Accounts receivableP(6,000) P4,000 P12,000 Jan. Feb. May P(4,000) P6,000 P(8,000) (10,000) 16,000 (4,000) (4,600) April June Inventories 8,000 (8,000) 14,000 (6,000 ) Accounts payable 2,000 2,000 The cash balance on January 1, 2021 is…
- QUESTION 2 In the late June of each year, BOS Global Ltd prepares a cash budget for the next 6 months. The entity's management wishes to prepare a cash budget in order to assess its likely requirements for short-term funds. Actual sales for May, and estimated sales for June, and for the next 7 months are as follows: Months Sales Revenues (Actual and Estimates) [GHS] Months Sales Revenues (Actual and Estimates) [GHS] 20,000 28,000 July 24,000 August 26,000 September 50,000 October 94,000 November 74,000 December 52,000 January 40,000 Approximately 25 per cent of sales are for cash and 75 per cent are on credit. Past experience has shown that two-third of all credit sales are collected in the month immediately following the month of sale, and the remaining one-third is collected in the second month following the sales. No discount is given. May June BOS Global Ltd follows a policy of basing its purchase on estimated sales. Purchases are 70 per cent of the following month's estimated…Question 9 View Policies Current Attempt in Progress The following information was taken from Waterway Industries's cash budget for the month of July: Beginning cash $450000 balance 364000 Cash receipts 494000 Cash disbursements If the company has a policy of maintaining a minimum end of the month cash balance of $390000, the amount the company would have to borrow is O $320000. O $60000. O $26000. $70000. hp 3 40 fho l ins prt sc 44 delete home & 7 num backspace lock P 7 H K L enter pause Σ ZChapter 7 Homework Question 7 of 7 - 12 Current Attempt in Progress Sheridan Company expects to have a cash balance of $55,200 on January 1, 2025. These are the relevant monthly budget data for the first two months of 2025. Collections from customers: January $85,200 and February $175,200. Payments to suppliers: January $48,000 and February $90,000. Wages: January $36,000 and February $48,000. Wages are paid in the month they are incurred. Administrative expenses: January $25,200 and February $ 28,800. These costs include depreciation of $1,200 per month. All other costs are paid as incurred. Selling expenses: January $18,000 and February $24,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $14,400in cash. Sheridan has a line of credit at a local bank that enables it to borrow up to $30,000. The company wants to maintain a minimum monthly cash balance of $24,000. Prepare a cash budget for…