Exam 22: Master Budgets

Parker,Inc.has a cash balance of $20,000 on April 1.The company is now preparing the cash budget for the second quarter.Budgeted cash collections and payments are as follows: There are no budgeted capital expenditures or financing transactions during the quarter.Based on the above data,calculate the projected cash balance at the end of April.

Why is the forecast of sales revenue considered to be the cornerstone of the master budget?

Risa,Inc.has provided the following extracts from their budget for the first quarter of the forthcoming year: The vendors are allowed the following terms of payment: Calculate the total payment on account for the month of March.

An operational budget is a short-term financial plan that coordinates activities needed to achieve short-term goals.

Components of the master budget are the operating budget,the capital expenditures budget,and the financial budget.

A master budget is a financial plan for a specific segment of an organization.

When preparing the budgeted balance sheet,the balance of the Accounts Payable account is taken from the cash budget.

Gamma Corp.has prepared a preliminary cash budget for the third quarter as shown below: Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $52,000 in July,$50,000 in August,and $42,000 in September.Based on the new data,calculate the new projected cash balance at the end of July.

Which of the following is useful to combine the data of different segments using different software for the purpose of creating companywide budgets?

Tokyo Corp.has prepared a preliminary cash budget for the third quarter as shown below: Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $52,000 in July,$56,000 in August,and $46,000 in September.Based on the new data,calculate the new projected cash balance at the end of August.

Amounts needed for the preparation of the budgeted balance sheet are taken from various operating and financial budgets.

The ________ details how the business expects to go from the beginning cash balance to the desired ending cash balance.

MFL Sales expects to sell 400 units of Product A and 360 units of Product B each day at an average price of $20 for Product A and $26 for Product B.The expected cost for Product A is 36% of its selling price and the expected cost for Product B is 59% of its selling price.MFL Sales has no beginning inventory,but it wants to have a six-day supply of ending inventory for each product.Compute the budgeted cost of goods sold for the next (seven-day)week.(Round the answer to the nearest dollar. )

In the budgeted statement of cash flows,all cash receipts and payments are categorized into operating,financing,and ________ activities.

Purchases of direct material for May were $114,000,while expected purchases for June and July are $121,000 and $140,000,respectively.All purchases are paid 75% in the month of purchase and 25% the following month.Calculate the budgeted payments for the month of June.

The budget process is a loop that consists of ________.

List the three sections of the cash budget.

From the following details provided by NutShell,Inc. ,prepare the manufacturing overhead budget for the year.Also,calculate the predetermined overhead allocation rate,using direct labor hours as the allocation base.

The amount of accumulated depreciation for the budgeted balance sheet can be obtained from the ________.

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Finished Goods Inventory can be taken from the ________.