ABC company Bhd provides the falowing inf armation in respect of its 3-month cash budget for the year 2019 as show in the table below. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balano of RM20,000 each month • The company can barrow at the begiming of the month in which the funds are needed to maintain the minimur cash balance and the inter est an loan is 24% per year. The inter est an autstanding loan is paid in the mont that follows the month in which the loan is dbtained. You are required to complete the 3-month (October, November, and Decenber) cash budget table fr ABC company. Note Provide answers ONLY for cdlared boxes AtoN Manth Oct ober November Decenber 1 Beginning cash balance RM40,000 E J 2 Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 nterest an loan G L 5 Loan repayment C H M 6 Ending cash balance D N 7 Minimumcash balance (RM20,000) (RM20,000) (RM20,000)
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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