The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances Cash ? Accounts receivable $ 8,400 Supplies inventory $ 4,500 Equipment $ 35,500 Accumulated depreciation $ 14,400 Accounts payable $ 2,100 Common stock $ 5,000 Retained earnings ? The beginning balance of retained earnings was $31,000, net income is budgeted to be $15,100, and dividends are budgeted to be $5,000.
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.
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted
| Ending Balances | ||
| Cash | ? | |
| Accounts receivable | $ | 8,400 |
| Supplies inventory | $ | 4,500 |
| Equipment | $ | 35,500 |
| $ | 14,400 | |
| Accounts payable | $ | 2,100 |
| Common stock | $ | 5,000 |
| Retained earnings | ? | |
The beginning balance of retained earnings was $31,000, net income is budgeted to be $15,100, and dividends are budgeted to be $5,000.
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