XYZ company is preparing its cash budget for the first quarter of. the year. It has $10,000 in cash at the beginning of the period. Cash collections from customers for the quarter are budgeted at $28,000. Cash payment during the quarter for inventory purchases are budgete at $25,000. The desired cash balance at the end of the quarter is $5,000. Other operating expenses for the quarter are budgeted at $20,000, which includes $3,000 depreciation. Cash expenses are paid in the month incurred. How much borrowing will the company need durin the quarter? Select one: O a. $15,000 O b. $12,000 O c. None of the given answers O d. $9,000 e. $1,000

Q: Sedita Incorporated is working on its cash budget for July. The budgeted beginning cash balance is…

A: Formula for excess (deficiency) of cash available over disbursement  = Budgeted Cash at the…

Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…

A:

Q: LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash…

A: The cash collection schedule is prepared to estimate the amount of cash collected during the period.

Q: You are working as a financial analyst for XYZ Co. , and you prepared the following sales and cash…

A: A cash budget is prepared to keep the track of available funds and where the same can be utilized to…

Q: Western Company is preparing a cash budget for June. The company has $10,600 cash at the beginning…

A: Cash budget was used by the management to plan for expected disbursements and receipts of cash for a…

Q: J Incorporated is preparing their cash budget and the following data were made available: -   Sales…

A: Cash budget of the business shows all expected cash receipts and cash payments to be made in future…

Q: The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next…

A: Cash Budget         Month May June  July         Estimated cash receipts from        Cash…

Q: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is…

A: Cash Balance before any borrowings = Beginning Cash Balance  + Cash Receipts  - Cash Disbursements…

Q: Use the following information to prepare a budgeted balance sheet for Grover Company for the month…

A: Balance sheet: A statement shows the status of all assets, liabilities and shareholder’s equity of…

Q: Holiday Corporation has found that 60% of its sales in any given month are credit sales, while the…

A: The planned inflow of financial funds into the corporation over a budgeted span of time is referred…

Q: Justin Company's budget includes the following credit sales for the current year: September,…

A: Answer:   $48,810

Q: The Cash Sales for the next three months (January to March) been estimated as $ 40,000, $ 50,000,…

A: Cash budget is a statement showing estimated cash inflows and cash outflows over the  period of…

Q: Company X is preparing its cash budget for the first quarter of the year. It has $2,000 in cash at…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Please prepare a cash budget for the Maliwan Co. for the month of April based on the following…

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Q: Matthew Young has been working on Sheffield Paints' cash budget for the coming year. Based on his…

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Q: For May, Young Company has budgeted its cash receipts at P125,000 and its cash disbursements at…

A: Cash borrow during the month = Desired cash balance - Actual cash available where, Actual cash…

Q: The Model Company is to begin operations in April. It has budgeted April sales of $64,000, May sales…

A: The cash budget is prepared to record the cash receipts and payment made during the period. 8

Q: The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next…

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Q: ONas Corporation is preparing its cash budget for September. The budgeted beginning cash balance is…

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Q: Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000…

A: Amount collected from December sales in the month of January = $132,000 × 30%40% = $99,000

Q: Ivory Inc. has forecast purchases on account to be $320,000 in March, $380,000 in April, $430,000 in…

A: Solution:  budgeted cash payments for June = June purchases*70% + May purchases*30%

Q: The company is in the process of preparing a budget for May and has assembled the following data: a.…

A: The question is based on the concept of Financial Accounting.

Q: XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash…

A: Answer: with formula:

Q: Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash sales are 10…

A: Cash Budget: A cash budget represents an organization's expected future cash flow over a set period…

Q: PIOLO COMPANY is currently preparing its cash budget for next month and has gathered the following…

A: Beginning cash balance + Expected cash receipts - Expected cash disbursements = Ending cash balance

Q: Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning…

A: The correct answer is company should borrow $6300.

Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…

A: Cash Budget - It is an estimation of cashflow of a business for specific period of time. It shows…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

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Q: Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash sales are 10…

A: Accounts receivable is the revenue earned but the payment for the same has not been received.

Q: J Incorporated is preparing their cash budget and the following data were made available: -   Sales…

A: In this question, we are required to formulate a table and calculate the cash balance for the…

Q: Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month…

A: Budgeted Sales is the forecast of How much revenue a company can earn in future.

Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…

A: Cash budgets are being made for periods to estimate the amount of cash outflow and inflow. This…

Q: XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash…

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Q: You are working as a financial analyst for XYZ Co. , and you prepared the following sales and cash…

A: Cash budget helps the management in identifying future surplus or deficit of cash by estimating cash…

Q: Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash sales are 10…

A: >Budgeted cash collection is required for preparation of Cash Budget.>Budgeted sales can be in…

Q: Orion Corporation is preparing a cash budget for the six months beginning January 1. Shown below are…

A: Accounts receivables can be defined as the payment which is yet to be received by the business in…

Q: Bagel Company is preparing its cash budget for the upcoming month. The beginning cash balance for…

A: Cash budget means the statement which shows the expected cash available for distribution including…

Q: Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month…

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Q: The following various elements relate to Whitfield, Inc.'s cash budget for April of the current…

A: The cash budget is an estimation of cash receipts and expenses on the basis of previous experience.

Q: XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash…

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Q: James Smith has been working on Crane Paints' cash budget for the coming year. Based on his…

A: Interest = Borrowing amount * Interest rate * period

Q: The Robbins Company is preparing its cash payments budget. The following items relate to cash…

A: SOLUTION-   BUDGET- It is the Financial Plan for the particular period. it is the estimation of…

Q: Capstone Inc. collects 20% of its sales on account in the month of the sale and 80% in the month…

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Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…

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Q: Getty Company expects sales for the first three months of next year to be $205,000, $270,000 and…

A: Collection terms are as follows: 30% of the sale is Cash Sale and 70% is Credit Sale Out of the…

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.