You are working as a financial analyst for XYZ Co. , and you prepared the following sales and cash disbursement estimates for the period August through December of the current year 80% of sales are for cash, the remaining 20% percent are collected one month later. All disbursements are on a cash basis. The firm wishes to maintain a minimum cash balance of$50. The beginning cash balance in September is $25. Prepare a cash budget for the months of October, November, and December, noting any needed financing or excess cash available.
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.
You are working as a financial analyst for XYZ Co. , and you prepared the following sales and cash disbursement estimates for the period August through December of the current year
80% of sales are for cash, the remaining 20% percent are collected one month later. All disbursements are on a cash basis. The firm wishes to maintain a minimum cash balance of$50. The beginning cash balance in September is $25.
Prepare a
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