treasurer of U Co. has accumulated the budget information presented in the table for the months of March and April pertaining to cash payments. Thirty percent of the merchandise costs are expected to be paid in the month they are incurred and the remaining seventy percent in the following month. All of the operating expenses are paid for by cash in the month they are incurred. The accounts payable balance on March 1 is $30,000. What is the amount to include in the Cash Budget for the month of March for the Operating Expenses?
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.
The treasurer of U Co. has accumulated the budget information presented in the table for the months of March and April pertaining to cash payments. Thirty percent of the merchandise costs are expected to be paid in the month they are incurred and the remaining seventy percent in the following month. All of the operating expenses are paid for by cash in the month they are incurred. The accounts payable balance on March 1 is $30,000.
What is the amount to include in the
|
|
MARCH |
APRIL |
|
Merchandise costs |
$60,000 |
$66,000 |
|
Operating expenses |
50,000 |
55,000 |
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