Use the following information: Beginning cash balance on March 1, $78,000. Cash receipts from sales, $301,000. Budgeted cash payments for direct materials, $140,000. Budgeted cash payments for direct labor, $71,000. Other budgeted cash expenses, $40,000. Cash repayment of bank loan, $10,000. Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash payments for the month of March and the balance expected on March 31.
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.
Use the following information:
- Beginning cash balance on March 1, $78,000.
- Cash receipts from sales, $301,000.
- Budgeted cash payments for direct materials, $140,000.
- Budgeted cash payments for direct labor, $71,000.
- Other budgeted cash expenses, $40,000.
- Cash repayment of bank loan, $10,000.
Prepare a
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