GP Intro - supply the funds to repay it THE MASTER BUDGET INTERRELATIONSHIP Sales Budget ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ Ending

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A master budget is a set of planned or projected financial statements used for both planning and control that is used at both the beginning and end of a financial period. At the beginning, the master budget is used as a plan and at the end it is used as a tool to determine its performance against the budget to help determine any improvements that may need to be made for future financial plans. A master budget is a combination of a balance sheet, income statement, and cash budget. The Victoria Kite Company wants a master budget for a three month period starting January 1, 2008. The following is a prepared master budget for the company including an income statement, balance sheet, cash budget, along with supporting schedules for the three month period. It will also give an explanation as to the necessity of acquiring a bank loan and which sources will
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Unformatted text preview: supply the funds to repay it. THE MASTER BUDGET INTERRELATIONSHIP Sales Budget ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ Ending Inventory Budget ↓ ↓ ↓ Direct Materials Budget Direct Labor Budget Overhead Budget ↓ ↓ ↓ Cash Budget ↓ Budgeted Income Statement → → → → → Budgeted Balance Sheet ← ← ← ← ← Selling and Admn. Budget References Accounting for Management. (2009). Master Budget . Retrieved April 14, 2010, from AccountingForManagement.com: http://www.accountingformanagement.com/the_master_budget.htm Horngren, C., Sundem, G., Stratton, W., Burgstahler, D., & Schatzberg, J. (2008). Introduction to Management Accounting: Fourteenth Edition. Upper Saddle River, New Jersey: Pearson Education, Inc....
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This note was uploaded on 01/18/2012 for the course ECON 421 taught by Professor Kimberlybennett during the Spring '10 term at American InterContinental University.

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