Purchase Solution

Prepartion of Master Budget for Pialligo

Not what you're looking for?

Ask Custom Question

Prepare a number of budgets and comment on the development and significance of each of them.

Please see attached for case.

Attachments
Purchase this Solution
Solution Summary

The solution explains how to make the individual budgets which together form the master budget for Pialligo Inc

Solution Preview

The attached file gives the calculations for the income statement, cash budget and the balance sheet. The calculations are in the calc sheet and these calculations are then transferred to the budget sheet to give the budgets. All explanations have been given so that you understand the process.

The following points to be noted

1. Taxes have not been considered as not given
2. New Plant purchase has been added in balance sheet and not in income statement as it will be depreciated. It is assumed to be paid in cash on purchase.

The development and importance and significant features of each budget:
a. Sales Budget- The sales budget is developed using the selling price and the quantity data made available. This gives the most important figures - the expected revenues. All expenses have to be paid from by the revenues generated by the sale. The sales budget shows that sales are increasing every quarter and that is a healthy sign
b. Production Budget - The production budget is developed from the number units required to be sold and the number of units required to be kep in inventory for the next period. Opening Units-Sales-Closing Units give the units ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Pialligo Stationery - Master Budget

    The Budget Director Jane Good is preparing to build its master budget for the coming year (2005). The budget will detail each quarter's activity and the activity for the year in total.

  • Multiple Choice

    133317 Normal Sequence of Budget Prepartion Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash Sales B. Production, Cash, Income Statement C.

  • Why would a company need to create a master budget?

    251627 The Necessity of a Master Budget A master budget is a detailed and comprehensive analysis of an organizations long and short term goals. Identify the major inputs to the master budget and the usefulness of each.

  • Features and advantages of a master budget

    75058 Master Budget List the features and advantages of a master budget. Also, distinguish between the components of master budget. List the features and advantages of a master budget.

  • Budget Starting Point

    If the sales budget is inaccurate, it will produce an inaccurate master budget because the master budget is built off of the sales budget. There are actually many causes that can lead to an inaccurate sales budget or an inaccurate master budget.

  • master (static) budget

    190526 Master (Static) Budget Master (static) budget is useful for all of the following except? Incorporating the impact of changing operating conditions. As a tool for initial planning.

  • Most important forecast in a master budget

    297205 Most important forecast in a master budget A master budget is a compilation of forecasts for the coming year or operating cycle made of various departments or function within an organization.

  • Components of Master Budget

    Cash budget will include summary of cash disbursements and receipts for the year. It will also determine whether working capital loan is required or not. This explain the Components of Master Budget

  • Earrings Unlimited: Master Budget with Supporting Schedules

    Brewer McGraw-Hill Irwin Attached please find Case 9-30 Master Budget with Supporting Schedules - Filename: Case 9-30 Master Budget with Supporting Schedules.doc See attached file. Master budget with supporting schedules are examined.

View More Related Solutions