Amaya Company is estimating the following raw material purchases for the last four months of the year: September – P900,000 October – P800,000 November – P 700,000 December – P1,000,000 At Amaya 60% of raw materials purchases are normally paid for in the month of purchase. The remaining 40% is paid for in the month following the purchase. Purchases for August amounted to P700,000. How much is the total cash disbursement for September?
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.
Amaya Company is estimating the following raw material purchases for the last four months of the year:
September – P900,000
October – P800,000
November – P 700,000
December – P1,000,000
At Amaya 60% of raw materials purchases are normally paid for in the month of purchase. The remaining 40% is paid for in the month following the purchase. Purchases for August amounted to P700,000.
How much is the total cash disbursement for September?
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