PIOLO COMPANY is currently preparing its cash budget for next month and has gathered the following information: Expected cash receipts P39,400 Expected disbursements: Direct materials P12,000 Direct labor P9,000 Manufacturing overhead P11,500 Selling and administrative expenses P22,000 The beginning cash balance will be P6,000 and the company requires a minimum cash balance at the end of the month of P5,000. How much will PIOLO need to borrow to meet its cash needs for the month
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.
PIOLO COMPANY is currently preparing its
How much will PIOLO need to borrow to meet its cash needs for the month?
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