Prepare a master budget for the three- months ending June 30, 2021. Include the following budget schedules and financial statements:
Sales Budget by month and total for the quarter
Schedule of expected cash collections from sales, by month and total.
Merchandise purchases budget in units and in dollars. Show the budget by month and total.
Schedule of expected cash disbursements for merchandise purchases, by month and total.
Cash Budget. Show the cash budget by month and in total.
Prepare a budgeted Income Statement for the three months ending June 30, 2021. Use the contribution approach.
Prepare a budgeted Balance Sheet as of June 30, 2021.
Your new manager has asked for your explanation about your experience in preparing this budget. She specifically wants to know your thoughts on the value of all this work and whether the benefits from the work are worth the effort. Prepare a memo (with a heading), no longer than 2 pages, describing your experience from this exercise, and your thoughts on the value of having a Master Budget.