AlNahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period . Cash collections from customers for the period are budgeted at $56,000 . Purchases of inventory as budgeted will cost cash payment during the period of $60,000 . The Company intends to keep its cash balance at the end of the period at $10,000 . Other operating expenses for this period are budgeted at \$30,000 , which includes $4,000 depreciation and any cash expenses are paid in the month incurred . How much borrowing will
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.
Step by step
Solved in 2 steps
