October GH¢240,000 November GH¢200,000 December GH¢300,000 75% of purchases are paid for in the month of purchase and the remainder in the month after purchase. 7. Details of expected sales (in units) are given below: August 20,000 September 18,000 October 21,000 November 15,000 December 20,000 Sales are likely to be made at a unit price of GH¢ 30. 8. Cash sales is expected to be made as follows: August GH¢140,000 September GH¢100,000 October GH¢200,000 November GH¢120,000 December GH¢140,000 The pattern for the collection of debts from customers is expected to be as follows: a. 60% in the month of sales (3% cash discount allowed). b. 20% in the first month after the month of sale. c. 15% in the second month after the month of sale. d. 5% is usually regarded as bas debt 9. Excess funds are invested (in multiples of GH¢10,000) in short term securities, at an interest rate of 20% per annum. 10. Borrowing must be paid together with any accrued interest whenever funds are available. Required Prepare cash budget, for the three month from October to December showing cash balance at the
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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