repare a Cash Budget from the data given below for a period of six months (July to December) (1) Month Sales (OMR) Raw Materials(OMR) May 75,000 37,500 June 75,000 37,500 July 1,50,000 52,500 August 2,25,000 3,67,500 September 3,00,000 1,27,500 October 1,50,000 97,500 November 1,50,000 67,500 December 1,37,500 ____ (2) Collection estimates: ➢ Within the month of sale: 5% ➢ During the month following the sale: 80% ➢ During the second month following the sale: 15% (3) Payment for raw materials is made in the next month. (4) Salary OMR 11,250, Lease payment OMR 3750, Misc. Exp. OMR 1150, are paid each month (5) Income tax OMR 26,250 each in September and December. (6) Payment for research in October OMR 75,000 (7) Opening Balance on 1st July OMR 55,000
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.
4. Prepare a
(1) Month Sales (OMR) Raw Materials(OMR)
May 75,000 37,500
June 75,000 37,500
July 1,50,000 52,500
August 2,25,000 3,67,500
September 3,00,000 1,27,500
October 1,50,000 97,500
November 1,50,000 67,500
December 1,37,500 ____
(2) Collection estimates:
(3) Payment for raw materials is made in the next month.
(4) Salary OMR 11,250, Lease payment OMR 3750, Misc. Exp. OMR 1150, are paid each month
(5) Income tax OMR 26,250 each in September and December.
(6) Payment for research in October OMR 75,000
(7) Opening Balance on 1st July OMR 55,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
