Shalom Company wants to maintain a minimum monthly cash balance of P20,000. The budget for the first quarter showed an ending cash balance of P21,000. In April, expected cash receipts are P321,000, and budgeted expenses, including depreciation of P30,000, are expected to be P288,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) Should Shalom Company enter into a financing agreement? Yes or No? Use the underlined words in capital letters as your choice.
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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