Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April $689,000 302,000 May $598,000 June $ 751,000 338,000 Credit sales Credit purchases Cash disbursements 282,000 Wages, taxes, and 137,000 129,000 179,000 expenses Interest 15,600 53,500 15,600 6,600 15,600 248,000 Equipment purchases The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000.
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.
| Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. |
| April | May | June | ||||||||||
| Credit sales | $ | 689,000 | $ | 598,000 | $ | 751,000 | ||||||
| Credit purchases | 302,000 | 282,000 | 338,000 | |||||||||
| Cash disbursements | ||||||||||||
| Wages, taxes, and expenses | 137,000 | 129,000 | 179,000 | |||||||||
| Interest | 15,600 | 15,600 | 15,600 | |||||||||
| Equipment purchases | 53,500 | 6,600 | 248,000 | |||||||||
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The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. |
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Using this information, complete the following cash budget: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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