Dorothy is a true accountant: she not only likes knowing where every dollar is going, she is obsessed with it. So she is happy to take on the cash budget for this small company. She wants to go back through the fourth-quarter plan with a fine-toothed comb before working on the following calendar year's cash budget. After reviewing many notes from the management team, she has the following information. Cash receipts Cash disbursements Addition information: . ● October $53,600 52,000 November $56,300 62,000 December $56,200 53,700 Line of credit withdrawals must be made on the first of the month in $1,000 increments. Line of credit payments must be made on the last day of the month in $1,000 increments. Credit line balance, September 30, $2,000.
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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