A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry plans to produce and sell 15,000 armrests at $50 per unit in its third year of operation and has also planned $20,000 for marketing campaigns, $100,000 for electricity, $240,000 for salaries, $300,000 for production materials, $20,000 for overhead, $24,000 for rent and $10,000 for depreciation. A-Design has a debt of $100,000 at an annual simple interest rate of 5% and a 25% income tax rate. For the month of January 2017, A-Design Inc. reported the following financial data in its journal: $100,000 in sales, $10,000 in loans, $2,000 for rent, $75,000 for production materials, $2,000 for marketing, $20,000 in salaries and $10,000 for electricity. Produce a cash flow statement for A-Design Inc. for January 2017.
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.
A-Design Inc., a federally incorporated company in Canada,
specializing in the design and manufacturing of armrests for
the wheelchair industry plans to produce and sell 15,000
armrests at $50 per unit in its third year of operation and has
also planned $20,000 for marketing campaigns, $100,000
for electricity, $240,000 for salaries, $300,000 for production
materials, $20,000 for
$10,000 for
at an annual simple interest rate of 5% and a 25% income
tax rate.
For the month of January 2017, A-Design Inc. reported the following
financial data in its journal: $100,000 in sales, $10,000 in loans,
$2,000 for rent, $75,000 for production materials, $2,000 for
marketing, $20,000 in salaries and $10,000 for electricity. Produce a
cash flow statement for A-Design Inc. for January 2017.
Step by step
Solved in 3 steps
