The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $520,000, all for cash. • Merchandise inventory on November 30 was $235,000. • The cash balance at December 1 was $25,000. Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash. • Budgeted depreciation for December is $39,00o. • The planned merchandise inventory on December 31 is $265,000. • The cost of goods sold is 70% of the sales price. • All purchases are paid for in cash. • There is no interest expense or income tax expense. The budgeted cash receipts for December are:
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information: • Sales at $520,000, all for cash. • Merchandise inventory on November 30 was $235,000. • The cash balance at December 1 was $25,000. Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash. • Budgeted depreciation for December is $39,00o. • The planned merchandise inventory on December 31 is $265,000. • The cost of goods sold is 70% of the sales price. • All purchases are paid for in cash. • There is no interest expense or income tax expense. The budgeted cash receipts for December are:
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...
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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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Transcribed Image Text:The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
Sales at $520,000, all for cash.
• Merchandise inventory on November 30 was $235,000.
• The cash balance at December 1 was $25,000.
Selling and administrative expenses are budgeted at $81,000 for December and are paid in cash.
Budgeted depreciation for December is $39,000.
The planned merchandise inventory on December 31 is $265,000.
• The cost of goods sold is 70% of the sales price.
• All purchases are paid for in cash.
• There is no interest expense or income tax expense.
The budgeted cash receipts for December are:
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