Upon receipt of the budget the team manager has now informed you that all companies in the industry in which Classique Household Furnishings operates are required to maintain a minimum cash balance of $140,000 each month. Based on the budget prepared, will the business be meeting this requirement? The business is already heavily indebted, so management does not wish to borrow any additional funds from outside sources. Suggest four (4) internal strategies that the business may employ in order to improve the organization's monthly cash flow. Each strategy must
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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