A company estimated the following raw materials purchases for the coming three months. Months April May June Amount $620,000 $640,000 $660,000 The company pays for the 30% raw materials purchases in the month of purchases while the remaining 70% of the raw materials purchases are paid for in the following month. What is the amount of accounts payable as on June 30? a. $448,000 b. $198,000 c. $462,000 d. $434,000
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.
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