Purchases in May were $65,000, while expected purchases for June and July are $80,000 and $95,000, respectively. All purchases are paid 35% in the month of purchase and 65% in the following month. At what amount are July payments for purchases budgeted? $85,250 $89,750 $95,000 $70,250
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.
Purchases in May were $65,000, while expected purchases for June and July are $80,000 and $95,000, respectively. All purchases are paid 35% in the month of purchase and 65% in the following month. At what amount are July payments for purchases budgeted?
|
$85,250 |
||
|
$89,750 |
||
|
$95,000 |
||
|
$70,250 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
