The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April. c. Fixed administrative expenses, which total $20,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which is paid in the month incurred, with the balance paid in the following month. April fixed expenses Answer March variable expenses Answer April variable expenses Answer Cash paid in April Answer d. A store asset originally costing $17,000, on which $6,000 depreciation has been taken, is sold for cash at a loss of $400. $Answer
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 following various elements relate to Whitfield, Inc.'s
c. Fixed administrative expenses, which total $20,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which is paid in the month incurred, with the balance paid in the following month.
| April fixed expenses | Answer
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| March variable expenses | Answer
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| April variable expenses | Answer
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| Cash paid in April | Answer
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d. A store asset originally costing $17,000, on which $6,000 depreciation has been taken, is sold for cash at a loss of $400.
$Answer
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