Question The following information is from Teas Window’s financial records. The company buys its raw material on account and pays: 50% of accounts payable during the month of purchase 40% in the first month after purchase 10% in the second month after purchase Month Purchases april 80,000 may 92,000 june 93,000 july 97,000 Compute the estimated total cash disbursements during July. Show your calculations
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.
Question
The following information is from Teas Window’s financial records. The company buys its raw material on account and pays:
- 50% of accounts payable during the month of purchase
- 40% in the first month after purchase
- 10% in the second month after purchase
| Month | Purchases | |
| april | 80,000 | |
| may | 92,000 | |
| june | 93,000 | |
| july | 97,000 |
Compute the estimated total cash disbursements during July. Show your calculations
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