The accountant for Munoz’s Dress Shop prepared the following cash budget. Munoz’s desires to maintain a cash cushion of $24,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 3 percent per month. Required Complete the cash budget by filling in the missing amounts. Determine the amount of net cash flows from operating activities Munoz’s will report on the third quarter pro forma statement of cash flows. Determine the amount of net cash flows from financing activities Munoz’s will report on the third quarter pro forma statement of cash flows.
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.
The accountant for Munoz’s Dress Shop prepared the following
Required
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Complete the cash budget by filling in the missing amounts.
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Determine the amount of net
cash flows from operating activities Munoz’s will report on the third quarter pro forma statement of cash flows. -
Determine the amount of net cash flows from financing activities Munoz’s will report on the third quarter pro forma statement of cash flows.
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