Budget: has unc Dec. 31, 2021 Ending Inventory Dec. 31, 2022 Ending Inventory Inventory Purchases Depreciation Expense Budget Gen. Administrative Expense Budget $78,000 64,500 825,000 84,000 92,550 125,000
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.
![Adzac Corporation has the following budget data for the year 2022.
Budget:
Dec. 31, 2021 Ending Inventory
Dec. 31, 2022 Ending Inventory
Inventory Purchases
Depreciation Expense Budget
Gen. Administrative Expense Budget
Selling Expense Budget
Rent Expense Budget
Salaries Expense Budget
Insurance Expense Budget
Question 3
a
W
If the sales budget is based on a target gross margin of 67% of sales, how much is the operating income budget?
(Round off the final answer to 2 decimal places.)
$78,000
64,500
825,000
84,000
92,550
125,000
150,000
218,000
53,450](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e712deb-02d7-4c13-84f0-424dbd886048%2F20c300df-5ee2-4bae-b027-5ba1464d9d69%2Fe066d6s_processed.jpeg&w=3840&q=75)
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