Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month of May: Cash collections from customers Cash paid to suppliers of merchandise inventory Accounts receivable from customer sales May $135,000 $109,000 May 1 $16,000 $18,500 May 31 $22,000 $11,000 Accounts payable from inventory purchases Assume the balance of the merchandise inventory account does not change during the month of May, and that selling and administrative expenses are budgeted at $26,000 for the month of May. What is Digital's budgeted operating income for the month of May? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00). 2010- 2001-20 1004
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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